Saipem nets $255 million in new drilling contracts

Italian oilfield contractor Saipem has been awarded new onshore and offshore drilling contracts worth approximately $255 million in total.

In onshore drilling, the new contracts have been obtained in Argentina, Ecuador and Peru, Saipem said on Thursday.

In offshore drilling, a contract has been signed with Eni Messico for the drilling, offshore Mexico, of 15 wells, plus 13 optional ones split in three different options. Work is expected to start in the first quarter of 2019 utilizing the new high specification jack-up Pioneer chartered from Jindal group. This unit will enlarge Saipem’s shallow water drilling fleet, for the period of contract validity.

Another contract has been awarded by Eni in the offshore Norwegian sector for which the Scarabeo 8, a harsh environment high specialized semi-submersible drilling unit, will be deployed. The work consists of the drilling of one well in 2019.

Furthermore, Saipem consolidated its presence in the Middle East thanks to the extension of offshore drilling activities of jack-up drilling units already operating in the area.

Finally, two contracts have been awarded by Eni, one in Pakistan, with the drillship Saipem 12000 and one contract extension in Indonesia, with the utilization of Scarabeo 7.

Stefano Cao, Saipem CEO, commented: “The awarding of important contracts in onshore drilling in South America marks the solidification of Saipem in the area and the strengthening of our presence in a market of particular interest in terms of size and prospects for growth. The new offshore drilling contracts confirm the Company’s consolidation strategy both with long-term and new clients with a view to growth in the drilling market.”

As previously reported, Saipem and Petrobel negotiated an offshore contract addendum worth more than $1.2 billion for engineering, procurement, construction and installation (EPCI) activities in relation to the “Ramp Up to Plateau” phase of the “supergiant” Zohr field development project situated in the Mediterranean Sea off the Egyptian coast.