Saipem in big deal worth $430 million

Saipem in big deal worth $430 million


Saipem has been awarded new contracts and extensions to existing contracts in the onshore drilling segment in the Middle East and South America. The awards have an overall value of $430 million.

In Saudi Arabia, Saipem has been awarded an extension of three years to drilling activities being carried out by ten 2000 HP drilling rigs. This enables Saipem to consolidate its presence in the strategic area of the Middle East, in which it currently has thirty onshore rigs and three offshore rigs. In the light of the particularly challenging market conditions, this represents a strong signal of confidence in Saipem and recognition of the high quality of the services it offers.

In South America, in addition to various extensions ranging in duration from two to twenty-four months for medium and high power rigs in Peru, Colombia, Bolivia and Chile, Saipem has also been awarded a new contract for operations in Argentina, which will be carried out by an hydraulic type rig over a period of eighteen months. This new award will enable Saipem to return to one of the largest onshore drilling markets in South America, whose positive growth prospects have seen it attract the interest of major international oil companies. Saipem’s presence in Argentina will also enable it to further diversify geographically in the area.

Saipem is one of the world leaders in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil & gas market. The company has distinctive competences in operations in harsh environments, remote areas and deepwater. Saipem provides a full range of services with “EPC” and “EPCI” contracts (on a “turn-key” basis) and has distinctive capabilities and unique assets with a high technological content.

Related News: Saipem hits BP’s big deal in Indonesia

Italian oil and gas contractor Saipem has been awarded two new engineering and construction (E&C) contracts in Indonesia on the BP-operated Tangguh LNG expansion project.

Tangguh LNG is a multinational project involving the development of six gas fields in the Wiriagar, Berau and Muturi Production Sharing Contracts (PSC) in Bintuni Bay, Papua Barat.

Saipem said on Wednesday that the contracts were awarded by BP Berau, the operator of the Tangguh LNG project, on behalf of the other production sharing contract parties.

The first contract is for the engineering, procurement, construction and installation of offshore facilities, consisting of two unmanned platforms and subsea pipelines.

The company said that it will contribute to local content enhancement, including through its own Karimun fabrication yard, in accordance with the requirements of Indonesia’s upstream oil and gas regulator, SKK Migas.

Also, CSTS, a joint operation led by Indonesian EPC Contractor Tripatra with Chiyoda, Saipem, and Suluh Ardhi Engineering, was awarded a construction contract for an onshore LNG process train with a liquefaction capacity of 3.8 million tons per annum, utilities, offsites, an LNG jetty and associated infrastructure.

Saipem said that the completion of both projects is expected in 2020.

Saipem CEO, Stefano Cao, said: “We are very pleased to have secured these two significant awards for the Tangguh LNG Expansion Project.

These achievements represent Saipem’s capacity to contribute to satisfying South Asia’s growing energy demand through our diversified EPCI capabilities in offshore platform construction & installation and onshore LNG process trains.”

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