Renewed Agreement Between Saipem and Aramco Extends Partnership Until 2027

Italy’s engineering, drilling, and construction services giant Saipem has renewed its long-term agreement (LTA) with Aramco, Saudi Arabia’s energy heavyweight.

According to Saipem, the extension of the agreement will allow the framework deal to continue until the end of 2027. This renewal grants Saipem the opportunity to bid for contract release purchase orders (CRPOs) alongside selected contractors for various projects, including new investments and maintenance of production capacity in Saudi Arabia’s offshore fields.

If Saipem secures contracts within Saudi Arabia under the LTA, the work will be undertaken by a consortium consisting of its subsidiary Snamprogetti Saudi Arabia and Saipem Taqa Al-Rushaid Fabricators (STAR). The consortium aims to enhance local participation by utilizing a fabrication yard established in Saudi Arabia in 2008.

With the renewal of the LTA, Saipem reaffirms its commitment to providing top-notch services, cutting-edge technology, and extensive expertise in Saudi Arabia’s offshore oil and gas sector, solidifying its position and reputation in the region.

Recent Developments in Saipem’s Operations

Recently, Saipem decided to exercise the extension option for the Deep Value Driller’s seventh-generation mobile offshore drilling unit (MODU), ensuring its continued collaboration with the Italian company until at least July 1, 2026.

In addition to this, Saipem has secured two significant engineering, procurement, construction, and installation (EPCI) offshore contracts valued at approximately $720 million. The first contract involves repairing damaged subsea pipelines in the Middle East, while the second contract pertains to subsea structures, umbilicals, risers, and flowlines (SURF) for the proposed Hammerhead oil field development project offshore Guyana.

These recent developments underscore Saipem’s continued commitment to excellence, innovation, and growth in the global energy industry.