Saipem has announced the renewal of its Long-Term Agreement (LTA) with Saudi Aramco, extending the partnership until the end of 2027.
This renewal confirms Saipem’s position on the exclusive list of contractors eligible to bid for Saudi Aramco’s offshore project contracts, known as Contract Release Purchase Orders (CRPOs).
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The LTA allows Saipem to compete for new construction projects and maintenance of production capacity in Saudi Arabia’s offshore fields.
Contracts awarded under the LTA will be executed by a consortium comprising Snamprogetti Saudi Arabia, a subsidiary of Saipem, and Saipem Taqa Al-Rushaid Fabricators (STAR), utilising the local fabrication yard established in 2008 to maximise in-country activities.
Saipem’s longstanding collaboration with Saudi Aramco encompasses onshore, offshore, and drilling projects.
In September of the previous year, Saipem secured a substantial offshore contract worth approximately $2bn (€1.8bn) for the development of the Marjan oil and gas field in Saudi Arabia.
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By GlobalDataThis contract falls under the scope of the LTA and was awarded following a competitive bidding process.
Saipem’s responsibilities for the Marjan field project include the engineering, procurement, construction, and installation (EPCI) of offshore structures and systems.
The project’s scope covers wellhead platforms’ topsides and jackets, a tie-in platform jacket and topside, as well as the installation of rigid flowlines, submarine composite cables, and fibre-optic cables, with Saipem’s local offshore fleet being deployed.
Furthermore, Saipem and Subsea7 have reached an agreement on a potential merger, aiming to create a global leader in the energy services sector.
The new entity, to be named Saipem7, will be equally owned by the shareholders of both companies and is expected to be listed on the Milan and Oslo stock exchanges.
