Saudi Aramco has awarded two offshore contracts to Saipem under their existing long-term agreement, strengthening ongoing collaboration on offshore and onshore infrastructure development in Saudi Arabia.
Contract Scope and Duration
First, under Contract Release Purchase Order (CRPO) 162, Saipem will execute a 32-month engineering, procurement, construction, and installation (EPCI) scope. The contract covers the installation of approximately 34 km of offshore pipelines, with diameters of 20 inches and 30 inches, along with associated topside modifications at the Berri and Abu Safah oil fields. Meanwhile, the second contract, CRPO 165, has a duration of 12 months. It includes subsea intervention works at the Marjan field, as well as the EPC of 300 metres of onshore pipeline and related tie-in activities.
Fabrication and Offshore Execution
Importantly, Saipem will carry out fabrication activities at its Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co. Ltd., located in Dammam. In parallel, offshore construction operations will utilise Saipem’s construction vessels currently operating in the region, ensuring continuity and operational efficiency.
Field Background: Berri and Abu Safah
Discovered in 1964, the Berri oil field is located along Saudi Arabia’s eastern coast and comprises both onshore and offshore production areas. The field holds an estimated 18.2 billion barrels of ultimately recoverable oil reserves. Adjacent to Berri, the Abu Safah field lies to the southeast and is operated by Saudi Aramco. It consists of multiple steel platforms, with several smaller wellhead platforms connected to larger central gathering platforms.
Marjan Crude Oil Increment Project
In addition, the Marjan crude oil increment project aims to boost production capacity by 300,000 barrels per day of Arabian Medium crude. The project scope includes a cogeneration facility, a water desalination plant, and the installation of new transfer pipelines to support increased output. As reported by ogj.com, Saipem values the two contracts at a combined $600 million. The deals highlight their strategic and financial significance for Aramco’s offshore development programme.
