Saudi Aramco has awarded two significant offshore contracts, totaling $1 billion, to the Italian energy contractor Saipem. These contracts are part of a 12-year framework agreement with Saipem, which was signed in November 2020. The agreement focuses on optimizing consumption and reducing CO2 and hydrogen sulfide emissions through onshore engineering and construction activities.
The first contract involves the engineering, procurement, construction, and installation (EPCI) of three production deck modules, 33 kilometers of subsea rigid pipelines, and 34 kilometers of subsea power cables in the Marjan oil and gas field. The second contract includes EPCI work for laying 22 kilometers of subsea rigid pipelines, 5 kilometers of subsea flexible pipelines, and 35 kilometers of subsea power cables at the Zuluf and Safaniyah oil fields. Saipem will use its construction vessels operating in the region for these offshore projects, with fabrication to be carried out at its Saudi fabrication yard, supporting local industry development.
In July, Saipem was also awarded contracts worth $500 million by Aramco for offshore projects in the Abu Safa, Berri, and Manifa oil fields. Despite these developments, Aramco reported a 9 percent decline in net profit for the first half of 2024, totaling SAR212 billion ($56 billion), due to lower crude oil volumes sold, weakened refining margins, and reduced finance income. Capital expenditures for the second quarter of 2024 reached SAR45 billion, amounting to SAR211 billion for the first half of the year, down from SAR232 billion in the same period the previous year.
