Saipem signs $700 million in new offshore contracts
Posted: 24 September 2007
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Offshore servicing company, Saipem has been awarded $700 million in new contracts for work offshore Saudi Arabia, including Spain.
Saudi Aramco has signed with a consortium comprising Saipem and its Saudi Arabian partners Taqa and Al Rushaid a long term agreement for the construction, transport and installation of offshore facilities in the kingdom, aimed at maintaining the country's oil production capacity (Maintain Potential Facilities Program).
The agreement has a firm duration of approximately seven years, plus two three-year options, and encompasses the engineering, procurement, construction, transport and installation of offshore platforms and pipelines.
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.
Saudi Aramco will periodically confirm the scope of subsequent works to be executed, valued on the base of a "price-per-unit" agreed scheme.
Fabrication works will be carried out in a yard currently under construction in Dammam, approximately 400 kilometres east Riyadh , Saudi Arabia , while the 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. |
