Saipem and Aramco Sign MOU for Potential New Co
Saipem has revealed that it and Saudi Aramco have signed a Memorandum of Understanding (MOU) that aims to explore the possibility of establishing a new entity in Saudi Arabia for the execution of engineering and construction activities in the industrial sector.
The agreement comprises the potential creation, in partnership with local entities, of an ‘EPC National Champion’ capable of executing, in-Kingdom, a full range of engineering, procurement and construction (EPC) project activities, while maximizing the employment of local resources, Saipem noted. The deal was struck at Aramco’s Nama’at Industrial Investment Program, which focused on capacity building in four sectors - sustainability, technology, industrial and advanced materials.
“Saipem has a long-standing collaboration with Saudi Aramco, including the execution of a wide set of activities, from onshore and offshore engineering and construction to drilling activities, with onshore and offshore rigs,” Saipem said in a statement posted on its website.
Saipem has announced several deals with Aramco in recent years. In November 2020, the company revealed that it had signed a framework agreement with Aramco, for a duration of twelve years, covering onshore engineering and construction activities. The agreement included efficiency activities on existing facilities and is part of Saudi Aramco’s broader long-term plan to update its facilities in the country’s Eastern Province, Saipem highlighted.
In February 2020, Saipem signed an EPCI deal with Aramco encompassing the design, engineering, procurement, construction and installation of a 36” carbon steel pipeline onto the existing network around the Ju’aymah area and brownfield services at the associated offshore platform. In July 2019, Saipem announced that it had been awarded two new contracts in Saudi Arabia, by Aramco, worth over $3.5 billion. The two projects involved the development of the land facilities of the Berri and Marjan gas fields, both located in the Arabian Gulf.
Aramco is one of the world’s largest integrated energy and chemicals companies, the business highlights on its website, which shows that Aramco manages the Kingdom’s proved reserves of 336.87 billion barrels of oil equivalent and has a workforce of more than 70,000 people.
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