Saipem wins two Saudi Aramco offshore contracts worth $600 million, expanding pipeline, subsea, and local fabrication activities in Saudi Arabia.
Saipem has secured two significant offshore contracts in the Kingdom of Saudi Arabia with a combined value of approximately USD 600 million, further reinforcing its role as a key engineering and construction partner in the region. The awards were issued in the form of Contract Release Purchase Orders (CRPOs) under Saipem’s existing Long-Term Agreement (LTA) with Saudi Aramco, highlighting the continued trust between the two companies.
The first award, identified as CRPO 162, covers a project duration of around 32 months and focuses on a broad scope of offshore development work. This contract includes the Engineering, Procurement, Construction, and Installation (EPCI) of approximately 34 kilometres of offshore pipelines, with diameters ranging between 20 inches and 30 inches. These pipelines will support production and transport infrastructure at the Berri oil field and Abu Safah oil field. In addition to pipeline installation, the contract also covers a range of associated topside works, which are critical for maintaining and enhancing offshore processing and operational efficiency.
The second contract, CRPO 165, has a shorter execution timeline of approximately 12 months and addresses a different set of offshore and onshore requirements. This scope includes subsea intervention activities at the Marjan oil field, one of Saudi Arabia’s strategically important offshore developments. Alongside subsea work, Saipem will also carry out the engineering, procurement, and construction of around 300 metres of onshore pipeline, as well as the completion of necessary tie-in activities to ensure seamless integration with existing infrastructure.
To deliver the offshore components of both projects, Saipem will deploy its specialized construction vessels that are already operating within the region. This approach allows the company to optimize execution schedules, reduce mobilization time, and leverage its established offshore logistics network in Saudi waters. The use of in-region assets also supports operational efficiency and cost control while maintaining high safety and technical standards.
Fabrication activities associated with the two contracts will be carried out locally at Saipem Taqa Al-Rushaid Fabricators Co. Ltd., Saipem’s Saudi fabrication yard located in Dammam. By utilizing this facility, Saipem aims to strengthen local industrial capabilities, promote knowledge transfer, and support Saudi Arabia’s broader objectives for localization and industrial development. The yard plays a central role in enhancing in-country value while ensuring that project components meet stringent quality and delivery requirements.
Overall, the award of these two CRPOs further consolidates Saipem’s long-standing partnership with Saudi Aramco and underscores the company’s strategic importance in supporting offshore oil and gas development in the Kingdom. The contracts not only expand Saipem’s backlog in the Middle East but also reaffirm its commitment to delivering complex offshore and subsea projects while contributing to the growth of local capabilities in Saudi Arabia.
