One of the world’s largest oilfield services operators, Saipem, recently won EPC (engineering, procurement and construction) contracts with the Saudi Arabian oil company, Aramco.

The Kingdom’s oil and gas major, which also operates the Valvoline lubricant brand, awarded two Contract Release Purchase Orders to the Italian firm, with a value of around $600 million in total.

Saipem securing the offshore contracts in Saudi Arabia reinforces its standing as the most prominent contractor in the Arab nation, and extends the company’s long-standing business relationship with Aramco.

Titled “CRPO 162”, the initial contract is 32 months in length and includes engineering work alongside procurement, installation and construction of a 34-kilometre-long pipeline, which ranges from a 20-inch diameter to a 30-inch diameter. The pipeline will be positioned over the Abu Safah and Berri oil fields, and Saipem will also handle all modification work required as part of the package.

A shorter 12-month contract will follow, called “CRPO 165”. This will cover EPC for 300 metres of pipeline tie-ins on shore, as well as subsea intervention operations in the Marjan field.

Saipem currently has active offshore construction vessels in Saudi Arabia. These will be deployed to help manufacture components at the company’s Taqa Al-Rushaid facility in Dammam to support development objectives for national capacity.

The fresh wins further strengthen Saipem’s partnership with Aramco, which has existed for decades. They also indicate momentum in Saudi Arabia’s offshore investment at major expansion and brownfield projects.

Up until 2016, Saipem was a subsidiary of Eni, the Italian oil and gas company. Today, Eni still holds a 30 per cent interest in Saipem.