Italy’s Saipem wins Aramco contract to extend gas field lifespan

Italian energy contractor Saipem said its joint venture in Saudi Arabia has won a €900 million ($1 billion) contract to increase the lifespan of Saudi Aramco’s Uthmaniyah gas field in the Eastern Province.

The gas compression expansion project will be undertaken by Saipem Nasser Saeed Al‑Hajri Contracting Company, which is jointly controlled by Saipem and Nasser Saeed Al‑Hajri and Partners Company for Contracting.

The project includes engineering, procurement and construction (EPC) activities for a new compression plant that will serve the non‑associated gas field of Uthmaniyah, Saipem said in a statement.

The new compression plant will extend the field’s production life to meet the kingdom’s growing energy demand.

The Uthmaniyah gas compression plant is the first EPC project awarded under Aramco’s national EPC champion programme.

State-backed Aramco is pursuing a strategy to increase its gas production by 80 percent to 18 billion standard cubic feet per dayby 2030, according to its website.

Aramco signed a 12-year framework agreement with Saipem in November 2020 to cover onshore engineering and construction activities.

In December, the Saudi-listed energy company awarded two contracts worth $600 million to Saipem to expand infrastructure at its oil fields.

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