Saipem Wins New Drilling Contracts Worth US $285 Million

Saipem has been awarded new contracts for the charter of onshore and offshore drilling rigs, for a total value in excess of US $285 million.

Onshore Drilling

Saipem has been awarded the contract to perform drilling activities in Block D of the Kashagan field in the Caspian Sea. The contract, awarded by Agip KCO (operator of the North Caspian Sea Production Sharing Agreement – PSA) following an international tender, comprises drilling activities to be carried out utilising two drilling rigs owned by the client. Installation activity is scheduled to be completed by December 2005 and April 2006 respectively. Operational activities are expected to last approximately five years from the commencement of rigs utilization.

Furthermore, Saipem has been awarded new contracts, whose duration ranges between 3 and 36 months, for the charter of 8 onshore rigs in Saudi Arabia, Algeria, Venezuela and Peru.

Offshore Drilling

Saipem has been awarded two contracts involving the offshore drilling rigs Perro Negro 2 and Perro Negro 4.

The first contract, awarded by Saudi Aramco, concerns the extension for an additional three years of the charter contract for the jack-up Perro Negro 2 for activities to be performed offshore Saudi Arabia starting from the second half 2005.

The second contract involves the renewal of Perro Negro 4 utilisation by Petrobel for two years. The shallow water jack-up will be utilized for workover activities on the Belaym field offshore Egypt.