Onshore & offshore deals in Middle East bring Saipem $1.25 billion

Italian oilfield services giant Saipem has been awarded multiple onshore extensions and new offshore contracts in the Middle East, totalling around $1.25 billion.

Saipem informed on Tuesday that it was awarded several contracts, both onshore and offshore, worth approximately $1.25 billion. The first group of deals is related to the extension of onshore drilling contracts in the Middle East for an overall amount of approximately $600 million.

These onshore awards entail a ten-year extension of existing contracts regarding four land rigs – with power ranging from 1,500 to 2,000 HP – which will be employed in the Middle East for exploration and production activities in various oil and gas fields, in continuity with operations under execution in the area.

In addition, Saipem got four new offshore contracts in the Middle East, encompassing the engineering, procurement, construction and installation of several offshore jackets, decks, subsea pipelines, subsea composite cables, umbilicals, fiber optic cables and brownfield modifications. The combined value of these contracts is approximately $650 million.

These contract awards follow the ones from April 2022, when Saipem secured over $400 million in new offshore drilling deals in the Middle East and West Africa.

When it comes to Saipem’s latest activities elsewhere, it is worth noting that the Italian giant revealed its decision to sell its onshore drilling business to KCA Deutag in June.

Saipem agreed to the sale for $550 million in cash plus an equity stake in the combined entity as part of its strategy to focus on offshore drilling.