Saipem inks $700mn Saudi offshore deal

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A consortium led by oil services group Saipem has signed a deal with Saudi Aramco to provide construction, transport and installation of offshore facilities in Saudi Arabia.

The seven year agreement, worth $700 million, is aimed at maintaining the country’s oil production capacity. It includes two three-year options, and encompasses engineering, procurement, construction, transport and installation of offshore platforms and pipelines.

Saipem leads a consortium which includes Saudi Arabian partners Taqa and Al Rushaid. A minimum workload is guaranteed during the first four years of the agreement, consisting of 16 platforms and 80 kilometres of sealines, in addition to the lay of the cables, ancillary to the platforms. Subsequent works will be valued on a price per unit basis.

Fabrication will be carried out in a yard currently under construction in Dammam, 400km east of Riyadh. Offshore activities will be performed by the vessel Castoro II.

Saudi Aramco is expected to issue the first plans and budget allocation in the fourth quarter of 2007.

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