Aramco awards $600m contracts to Italy’s Saipem

Saudi Aramco has awarded two offshore contracts worth $600 million 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.

The first contract has a duration of 32 months and includes the engineering, procurement, construction, and installation of 34 km of pipeline and related works on topside structures at the Berri and Abu Safah oil fields.

The second contract will last for 12 months and covers subsea interventions at Marjan field and the engineering, procurement, and construction of 300 metres of onshore pipeline and associated tie-ins, Saipem said in a statement.

The Italian company will deploy its construction vessels currently in the region.

The fabrication activities for the projects will be executed at Saipem’s Saudi fabrication yard in Dammam, thereby strengthening and developing the local industry’s capabilities.

In July 2024, Aramco awarded two offshore contracts worth $500 million to Saipem, followed by a $1 billion contract in September 2024.

In August, CEO Amin Nasser said Aramco would continue to invest in its liquefied natural gas operations despite a sharp decline in revenue caused by depressed oil prices.

The Saudi-listed energy company’s net profit for the July-September quarter fell 2.3 percent year on year to SAR101 billion as revenue declined 7 percent year on year to SAR386 billion.

Saudi Arabia’s government owns 81.5 percent of Aramco, and the Public Investment Fund holds 16 percent, leaving 2.5 percent available to minority investors.

Aramco shares closed 0.3 percent lower at SAR23.62 on Tuesday, down 15 percent over the past year.