Uchenna Izundu
International Editor
LONDON, Sept. 25 -- Saudi Aramco has let a contract to Saipem SPA and its Saudi partners TAQA and Al Rushaid to construct, transport, and install oil production facilities in the kingdom.
The 7-year contract will help Saudi Arabia maintain its oil production capacity. Saudi Aramco has two 3-year options to renew the deal.
"A minimum workload is guaranteed during the first 4 years of the agreement," Saipem said. "[Work will consist of] 16 platforms and 80 km of sea lines, in addition to the lay of the cables, ancillary to the platforms."
Aramco periodically will confirm the scope of subsequent work to be executed, valued on the base of a "price-per-unit" agreed scheme.
Fabrication will be carried out in a yard under construction in Dammam, 400 km east of Riyadh, Saudi Arabia. The Castoro II vessel will carry out offshore activities.
Aramco plans to allocate budget in the fourth quarter.
Contact Uchenna Izundu at [email protected].
