Saipem staying in Saudi offshore game with Aramco deal renewal

Italy’s engineering, drilling, and construction services giant Saipem has renewed its long-term agreement (LTA) with Aramco, Saudi Arabia’s energy heavyweight.

As disclosed by Saipem, the extension will allow the framework deal to run until the end of 2027. The renewal enables the Italian player to bid for work orders, known as contract release purchase orders (CRPOs), with other selected contractors. The orders can vary from the construction of new investment projects to maintaining production capacity from Saudi Arabia’s offshore fields.

If Saipem wins contracts for activities within Saudi Arabia under the LTA, these will be carried out by a consortium between its subsidiary Snamprogetti Saudi Arabia and Saipem Taqa Al-Rushaid Fabricators (STAR). The consortium aims to maximize local activities by utilizing a local fabrication yard, established in Saudi Arabia in 2008.

The Italian player sees the renewal of the LTA as confirmation of the trust in its services, technology, and expertise, reaffirming Saipem’s role and presence in Saudi Arabia’s offshore oil and gas sector.

This follows an extension Aramco handed out to the UAE-based offshore fabrication contractor Lamprell earlier this week. 

Meanwhile, Saipem recently decided to exercise the extension option for the Deep Value Driller’s seventh-generation mobile offshore drilling unit (MODU). This will enable the drillship to remain with the Italian giant until at least July 1, 2026.

The firm also secured two engineering, procurement, construction, and installation (EPCI) offshore contracts with a combined value of around $720 million.

The first encompasses the repair of damaged subsea pipelines in the Middle East, and the second subsea structures, umbilicals, risers, and flowlines (SURF) at the proposed Hammerhead oil field development project offshore Guyana.