Aramco awards $1bn oil-field contract to Saipem

Aramco

Saudi Aramco has awarded two offshore contracts worth $1 billion to Italian energy contractor Saipem to expand infrastructure at its oil fields.

The contracts are part of the 12-year framework agreement with Saipem, signed in November 2020, to cover onshore engineering and construction activities. It aims to optimise consumption and reduce emissions of CO2 and hydrogen sulfide.

The first contract includes the engineering, procurement, construction and installation (EPCI) of three production deck modules, 33 km of subsea rigid pipelines and 34 km of subsea power cables in the Marjan oil and gas field.

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The second contract covers the EPCI work for laying 22 km of subsea rigid pipelines, 5 km of subsea flexible pipelines, and 35 km of subsea power cables at the Zuluf and Safaniyah oil fields.

Saipem will deploy its construction vessels operating in the region for the offshore component of the two projects.

Fabrication for these projects will be carried out at Saipem’s Saudi fabrication yard, which will support the development of local industry.

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In July, the Italian oil services company was awarded contracts for two offshore projects worth $500 million from Aramco for the Abu Safa, Berri and Manifa oil fields.

Aramco last month reported a 9 percent decline in net profit to SAR212 billion ($56 billion) in the first half of 2024 due to lower crude oil volumes sold, weakening refining margins and lower finance income.

Capital expenditures for the second quarter of 2024 reached SAR45 billion and amounted to SAR211 billion for the first half of the year, down from SAR232 billion during the same period a year ago.