Saipem inks $700mn Saudi offshore deal

zoom

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.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM