Saipem Flags Onshore Contracts
Italian contractor Saipem announced late July 25 it has been awarded onshore engineering and construction (E&C) contracts worth a total of roughly $800mn in five countries.
Three of the contracts are gas-related, namely in Saudi Arabia, Serbia and Nigeria, while the remaining two in Mexico and Iraq are oil-related. Saipem did not disclose the individual contract values.
Earlier the same day Saipem reported a first half 2018 net loss three times greater than its 1H2017 loss.
In Saudi Arabia, state producer Saudi Aramco has awarded the Italian firm a contract for procurement and construction in relation to the 'South Gas Compression Plant Pipelines' project for the development of the Haradh gas plant in the east of the kingdom; the scope of work includes building flowlines and trunklines of various diameters, for an overall length of over 700 km, plus associated facilities. It follows on from the multi-billion-dollar Southern Area gas awards in November 2017 made by Aramco to various companies (not including Saipem).
Nigeria LNG has awarded a front-end engineering and design (Feed) contract, which NLNG announced two weeks ago, to a Saipem-Chiyoda-Daewoo joint venture. A rival consortium has also been awarded a Feed contract too, and both consortia will have to compete for a final contract to engineer and build for NLNG's planned 7th liquefaction train at Finima, Bonny Island.
Saipem also said it was awarded a contract, without saying from whom, for engineering services and the acquisition of construction permits relating to the laying of pipes for the transport of gas to Serbia.
The two oil-related contracts were: from ExxonMobil for the DS6 project to debottleneck the West Qurna field, near Rumaila in southeast Iraq; and from Mexican state Pemex a contract for works at the latter's 'Miguel Hidalgo' refinery including the restart of a hydro-desulphurisation unit there.