Saudi Aramco Taps Saipem for Pipeline System Contract

Saudi Aramco Taps Saipem for Pipeline System Contract
Saipem has won onshore contracts in Asia, Europe, North America and Africa totaling approximately $800 million.

Saipem has won onshore engineering and construction (E&C) contracts in Asia, Europe, North America and Africa totaling approximately $800 million, the Italy-based company reported Wednesday.

Saudi Aramco has awarded Saipem a procurement and construction contract for its South Gas Compression Plant Pipelines project tied to the development of the Haradh gas plant (HdGP) in eastern Saudi Arabia, Saipem reported Wednesday. In a November 2017 press release, Saudi Aramco stated that the program as an initiative for “improving and sustaining gas production from Haradh and Hawiyah fields by reducing choke pressure at the wellhead to 300 pounds per square inch gauge.” The company added that the program will extend plateau life of both fields by two decades while maintaining production rates.

Saipem stated that its scope for the South Gas project includes constructing:

  • A 700-kilometer system of pipelines of various diameter that includes flowlines, trunklines, transmission lines
  • Associated facilities to transport gas from various storage and distribution points inside the plant.

The Saudi Arabia project is not Saipem’s only recent contract win in Southwest Asia. Also on Wednesday, Saipem stated that it received a contract from ExxonMobil Iraq Limited for the DS6 project in the West Qurna field in southeastern Iraq. The 23-month project calls on Saipem to optimize a plant to boost its overall capacity and will be executed primarily from Saipem’s Rumahila fabrication yard, the company noted.

Outside of Asia, Saipem – through its Saimexicana unit – secured a contract from Pemex for work on its Miguel Hidalgo refinery, which is located in Tula de Hallende north of Mexico City. According to Saipem, the project will involve restarting a residue hydrodesulphurizer to lower sulphur levels in refined products.

Saipem also announced that it obtained contracts for the following projects in Africa and Europe:

  • Front end engineering design – in conjunction with joint venture partners Chiyoda and Daewoo – from Nigeria LNG Limited (NLNG) that also entails preparing the engineering, procurement and construction proposal for adding a seventh liquefaction train at the NLNG facility in Finima on Bonny Island, Nigeria.
  • Engineering services and permit acquisition for construction work related to laying pipes for transporting gas to Serbia.


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