Saipem Wins 3 Drilling Contracts

Saipem has been awarded three contracts involving the Scarabeo 7, Scarabeo 6 and Perro Negro 4. The total value of the three contracts is approximately US $170 million.

The first contract concerns the utilization of the semisubmersible drilling rig Scarabeo 7 by Esso Exploration and Production Nigeria Limited (EEPNL), a subsidiary of Exxon Mobil Corporation. Scarabeo 7 will be utilized for EEPNL Erha's project offshore Nigeria. The contract has an estimated duration of approximately three years. The client has the option to extend the contract for a further period of up to approximately one and a half years. Activities are expected to start during the second quarter of 2003.

The long-term life of the contract allows Saipem to further strengthen local content, by increasing employment opportunities and enhancing local professional skills. This award is consistent with Saipem's strategy of favoring medium-long term contracts in frontier areas.

The second contract concerns the utilization of Scarabeo 6 for drilling in the Norwegian sector of North Sea by TotalFinaElf Exploration Norge AS. The contract activities will be carried out between February and August this year. TotalFinaElf has the option to extend the contract further to drill two additional wells.

The third contract involves the utilization of Perro Negro 4 by Petrobel. The shallow water jack-up will be utilized on workover activities on Belaym field offshore Egypt. The contract will last up to the end of 2004.