Italian oil and gas engineering giant Saipem has announced a major partnership, winning two offshore EPC contracts from Saudi Aramco with a total value of $600 million. This signing not only further consolidates Saipem's leading contractor position in the Saudi oil and gas engineering market, but also takes its decades long partnership with Saudi Aramco to new heights.

The two contracts each have their own focus, accurately anchoring the upgrade and operation needs of Saudi Arabia's core oil fields. The first one is the EPCI contract for offshore pipelines and upper structures in Berri and Abu Safah oil fields, covering a total length of approximately 34 kilometers, with pipe diameters of 20 inches and 30 inches respectively, as well as supporting upper structure engineering. The project duration is set at 32 months. The second contract focuses on the Marjan oil field, including underwater intervention operations, as well as the EPC project for a 300 meter onshore pipeline and supporting connection facilities, with a construction period of 12 months.

It is worth noting that the core manufacturing work of this contract will be landed in Saipem Taqa Al Rushaid Fabricators Co. Ltd, a local manufacturing plant of Saipem in Dammam, Saudi Arabia, and offshore operations will be completed by the construction vessels deployed by the company in the local area. This arrangement not only meets Saudi Arabia's demand for localized industrial development, but also relies on existing resources to reduce project costs and improve execution efficiency, highlighting Saipem's mature layout in deeply cultivating regional markets.

In fact, Saipem has achieved frequent successes in the field of oil and gas engineering this month. At the beginning of the month, a consortium formed by the company and CNOOC Engineering successfully won the EPCI contract for the sustainable offshore compression integrated facility project in the northern oil field of Qatar Energy Company, with a total contract value of approximately 4 billion US dollars, of which Saipem's share is as high as 3.1 billion US dollars. Winning consecutive bids for super large oil and gas projects in the Middle East not only confirms Saipem's hardcore strength in the offshore EPC field, but also reflects the strategic determination of Middle Eastern oil and gas giants to upgrade production capacity and lay out long-term energy supply.Editor/Bian Wenjun