Italian offshore services provider Saipem has been awarded new contracts in the offshore business, three for its semi-submersible rig Scarabeo 8 in Norway, one in the decommissioning space, and one for offshore construction and installation.
As for the rig deals, the sixth-generation drilling rig’s first contract is with Shell, which has exercised an option for one well it had as part of the contract previously assigned and announced last December. Following the completion of the Shell well, the Scarabeo 8 will be taken over by Total for the drilling of one well in Norway.
An additional contract was also finalized with Aker BP for the drilling of 4 wells plus 2 optional. Operations are expected to start by the end of the fourth quarter of 2018, following completion of operations for Total E&P Norge A/S.
In the offshore E&C sector, Saipem has been awarded a project by ConocoPhillips Ltd for decommissioning in the UK sector of the North Sea. Saipem did not provide the name of the project to be carried out for ConocoPhillips.
Al Khafji deal
The Italian company said it has also been awarded a new project in the Arabian Gulf. Works involve engineering, construction, offshore installation and commissioning of a new crude transmission line. The contract has been awarded by Aramco Gulf Operations Company Limited (AGOC) and Kuwait Gulf Oil Company (K.S.C) (KGOC), jointly operating as Al Khafji Joint Operations (KJO).
Stefano Cao, Saipem CEO, said: “The new contracts in offshore drilling confirm the strategy of the company in this segment, aimed at consolidating relationships, including with new customers while awaiting a further recovery of this market. Moreover, through the new awards in offshore E&C, Saipem is further reinforcing its presence and solid expertise in a strategic business such as decommissioning.”
The contracts are worth $190 million in total.