Other BriefingsItaly’s Saipem Expands Offshore Portfolio with Major Contracts in Qatar and Saudi Arabia
Italian energy contractor Saipem continues to strengthen its position in the Middle East with the recent award of significant offshore engineering, procurement, and construction (EPC) contracts in both Qatar and Saudi Arabia. The contracts, valued at a combined total of approximately US$5 billion, underscore the company’s capability in delivering large-scale infrastructure projects in the region’s vital energy sector.
QatarEnergy’s US$4 billion offshore compression program
In a monumental deal, Saipem secured a US$4 billion EPC contract from QatarEnergy LNG for the Combined COMP3A & COMP3B of the North Field Production Sustainability Offshore Compression Program. This contract, aimed at sustaining production levels in Qatar’s North Field natural gas reservoir, is one of the largest projects Saipem has undertaken in the region. The North Field, located offshore the northeast coast of Qatar, is the world’s largest natural gas field, and sustaining its output is critical to Qatar’s energy strategy.
Under the scope of this contract, Saipem will engineer, procure, fabricate, and install six platforms, along with nearly 100 kilometers of corrosion-resistant alloy rigid subsea pipelines, 100 kilometers of subsea composite cables, and 150 kilometers of fiber optic cables. These advanced subsea systems will play a pivotal role in ensuring the longevity and efficiency of Qatar’s natural gas output.
This contract follows Saipem’s earlier involvement in the North Field’s production sustainability efforts. In October 2022, the company was awarded the EPC package for the North Field Production Sustainability Offshore Compression Complexes Project (COMP 2), which is currently under execution.
Strengthening ties with Saudi Aramco
In Saudi Arabia, Saipem was awarded two major offshore contracts worth US$1 billion under its existing long-term agreement with Saudi Aramco. These contracts highlight Saipem’s longstanding partnership with Saudi Aramco, one of the world’s largest oil producers, and reinforce the company’s strong presence in Saudi Arabia’s energy landscape.
The first contract involves the engineering, procurement, construction, and installation (EPCI) of three production deck modules (PDMs), 33 kilometers of subsea pipelines, and 34 kilometers of subsea power cables in the Marjan oil and gas field. The second contract includes the EPCI of three jackets, five PDMs, 22 kilometers of subsea pipelines, and 35 kilometers of subsea power cables, with infrastructure set to be installed in the Zuluf and Safaniyah oil fields.
Saipem’s work on these projects will be supported by its offshore fleet of construction vessels, which are currently operating in the region. Additionally, the fabrication for these projects will take place at Saipem’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co. Ltd., further contributing to the development of Saudi Arabia’s local industry capabilities.
Regional growth and future prospects
These recent awards solidify Saipem’s leadership in the Middle East’s offshore energy sector. In Qatar, the contract bolsters Saipem’s role in ensuring the sustainability of one of the world’s most critical natural gas reserves, while in Saudi Arabia, the deals reaffirm the company’s deep ties with Saudi Aramco and its growing footprint in the Kingdom’s oil and gas industry.
Saipem’s ability to execute complex projects across multiple geographies, coupled with its extensive fleet of vessels and advanced fabrication yards, positions the company well to capture future opportunities in the region’s rapidly evolving energy market. As the Middle East continues to invest heavily in both oil and gas infrastructure and energy transition initiatives, Saipem is poised to remain a key player in the region’s growth story.
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