Saipem Wins Two Contracts Totaling 220 Million Euro

Saipem has been awarded two lump sum turnkey contracts for a total amount of approximately 220 million Euro.

In the offshore construction segment, Saipem has been awarded the lump sum contract for the installation of a pipeline to transport natural gas crossing the North Sea continental shelf of Netherlands and UK from Callantsoog on the north western Dutch coast to Bacton on England's east coast. The contract has been awarded by BBL Company, and has a total value in excess of 100 million Euro. The scope of work comprises the installation of 230 km x 36" diameter gas pipeline and associated land-fall and tie-in works. The vessel Castoro Sei will carry out most of the pipelay between second and third quarter 2006.

In the onshore construction segment, Saipem has been awarded the lump sum turnkey contract of de-bottlenecking for Soku LNG Gas Supply Plant Facilities, in Nigeria.The contract, awarded by Shell Petroleum Development Company of Nigeria Ltd., amounts to approximately 150 million USD (approximately 120 million Euro). The scope of work encompasses engineering, procurement and construction (EPC) of additional facilities at the LNG Gas Supply Plant located in Soku, Nigeria, to increase its capacity and also improve operability. The completion of activities is expected in the second half of 2006.