Saipem has secured a $500 million contract from Saudi Aramco for expansion work at the Safaniyah offshore oilfield, the world's largest offshore field producing about 1.3 million barrels per day. This contract, awarded under Aramco's long term agreement (LTA) framework, reinforces Saipem's established presence in the region.

Scope of Work and Project Details

The contract involves the engineering, procurement, construction, and installation (EPCI) of a 48-inch diameter trunkline, with 65 kilometres offshore and 12 kilometres onshore, along with associated subsea facilities. Offshore operations will be executed by Saipem's regional vessels, while fabrication will occur at its Saipem Taqa Al-Rushaid Fabricators yard in Dammam, Saudi Arabia.

Contract Context and Market Activity

This award is a contract release and purchase order (CRPO) under Aramco's LTA. While the specific CRPO number was not disclosed, sources indicate Saipem secured one of several CRPOs (154, 155, 156, 161, 163, 164) expected to be awarded soon. Saipem has been a major beneficiary of the LTA framework recently, also winning contracts for CRPOs 162 and 165 in December. The LTA market, typically valued at $2 billion to $3 billion annually, has seen increased activity in 2025 driven by multibillion-dollar contracts for the Zuluf field.

Strategic Importance and Future Outlook

The project aligns with Aramco's strategy of heavy upstream investment, particularly in gas, to maintain production at giant fields like Safaniyah, which requires ongoing investment. Saipem's CEO confirmed the LTA framework represents a robust and continuous stream of commercial opportunities, primarily focused on replacing, upgrading, or installing new facilities to enhance production or replace aging infrastructure.