Saipem Clarifies Supposed Cancellation of Manifa Contract

With reference to the rumors about a supposed cancellation of the GOSP Manifa contract awarded in July to Saipem by Saudi Aramco, Saipem clarifies what follows:

  • The contract has not been cancelled at the moment.
  • Saudi Aramco has required not to undertake further commitments towards suppliers/subcontractors while waiting the results of an analysis aimed at cost optimization.

Saudi Aramco awarded Saipem the lump sum turn key contract for package No 1 of the Manifa Central Processing Facilities (CPF) project, in the frame of the Manifa Field Development Program to increase the production capacity of the Kingdom of Saudi Arabia by 900,000 bbls/day. The Manifa Field is located approximately 200 kilometers north of Dhahran, Saudi Arabia.

The contract encompasses the EPC (engineering, procurement and construction) of three gas/oil separation trains (GOSP) with a capacity of 300,000 daily bbl each, gas dehydration, crude inlet manifolds and the flare gas system.