Italy's Saipem wins $200m contracts in Middle East, Norway

Italy's Saipem wins $200m contracts in Middle East, Norway
Saipem has won oil and gas work in the Middle East and Norway.
Published: 7 April 2019 - 6:45 a.m.
By: Jack Ball

Italian contractor Saipem has been awarded two offshore contracts in Norway and the Middle East, with the oil and gas project deals having a combined value of more than $200m.

According to a statement, the Middle East contract involves a four-year extension of the use of the high-spec Perro Negro 7 jack-up rig, a self-elevating drilling unit capable of operating in water depths of up to 114.3m.

The location of the drilling unit was not disclosed, although Saipem confirmed work on the project started at the end of Q1 2019.

Meanwhile, the second contract was signed with German firm Wintershall for the drilling of two wells, plus two optional ones, in line with previous engagements for operations offshore in Norway.

The contract will be implemented by Scarabeo 8, a sixth-generation semi-submersible drilling unit capable of working in harsh environments.

Milan Stock Exchange-listed Saipem said the rig is expected to be under operation until approximately the Q2 2020, adding: “With this contract, Saipem consolidates its presence in the North Sea-Norweigan Sector and extends its client base in offshore drilling to a new important player.”

The news comes just weeks after the loss-making contractor announced it had won onshore drilling work – both as new deals and contract extensions – in Saudi Arabia and four other countries around the world.

Despite such wins, the engineering company reported a loss for 2018. Full-year losses, which plunged from $371.2m in 2017 to $534.2m last year, come as the company also faces allegations of false accounting and market manipulation.

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