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    Saipem Flags Onshore Contracts


The Italian contractor has announced new contract awards in five countries, three of which relate to gas or LNG.

by: Mark Smedley

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Natural Gas & LNG News, Corporate, Contracts and tenders, Infrastructure, Liquefied Natural Gas (LNG), Pipelines, News By Country, Italy, Nigeria, Saudi Arabia, Serbia

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.