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Saipem signs two contracts with Saudi Aramco worth USD 1 billion

Saipem wins two offshore oil engineering, procurement, construction and installation (EPCI) contracts with Saudi Aramco, worth a total of around 1 billion USD, for the Marjan, Zuluf and Safaniyah fields in Saudi Arabia.

energynews
Le 5 September 2024

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Saipem signs two major contracts with Saudi Aramco as part of their Long Term Agreement for offshore oil projects in Saudi Arabia.
The cumulative value of these contracts is around 1 billion USD, covering engineering, procurement, construction and installation (EPCI) works for the development of the Marjan, Zuluf and Safaniyah offshore oil fields.
These new projects are part of Saudi Aramco’s strategy to strengthen its offshore hydrocarbon production capabilities.

Development of subsea facilities at Marjan

The first contract concerns the Marjan oil field.
Saipem is responsible for the installation of three Production Deck Modules (PDMs), 33 kilometers of 12″ and 16″ subsea rigid pipelines, and 34 kilometers of subsea power cables.
The project aims to modernize existing infrastructure and optimize Saudi Aramco‘s production operations.
By deploying construction vessels already operating in the region, Saipem is reducing mobilization costs and accelerating lead times.
The Marjan field in the Persian Gulf remains a key site for Saudi Aramco’s offshore expansion.
Investment in this subsea infrastructure is essential to improve operational efficiency and meet global oil demand.

Capacity enhancement at the Zuluf and Safaniyah fields

The second contract covers the Zuluf and Safaniyah oil fields.
It calls for the installation of three jackets, five production bridge modules, 22 kilometers of 16-inch rigid pipelines, 5 kilometers of flexible pipelines, as well as 35 kilometers of subsea power cables.
The diversity of the infrastructure to be installed reflects the complexity of Saudi Aramco’s technical requirements for these two fields, requiring tailored solutions to maximize resource extraction.
The Zuluf and Safaniyah fields are among the largest and oldest offshore fields operated by Saudi Aramco.
This project will enhance their production capacity, while integrating them into the company’s global development strategy.

Local manufacturing and optimization of resources

The components required for these projects are manufactured by Saipem Taqa Al-Rushaid Fabricators Co.
Ltd, based in Saudi Arabia.
This approach meets Saudi Aramco’s requirements to increase local content, in line with the Kingdom’s Vision 2030.
By promoting local production, Saudi Aramco seeks to develop industrial skills and strengthen the autonomy of its oil industry.
For Saipem, this localization of manufacturing minimizes supply chain risks and improves responsiveness to customer requirements, reinforcing the long-term strategic partnership with Saudi Aramco.

Background and outlook for the offshore oil sector

These contracts reflect the continuing demand for the development of robust offshore oil infrastructures, and Saudi Aramco’s determination to maintain its dominant position in the hydrocarbon sector.
The signing of these agreements comes at a time when investment in offshore exploration and production remains a priority, underpinned by stable oil prices and prospects for growth in global demand.
Efficiency in the delivery of complex projects remains a crucial competitive advantage.
Investment in modern, reliable infrastructure enables Saudi Aramco to meet industry challenges and strengthen its competitiveness in the global marketplace.

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