The Saudi giant has renewed long-term agreements with the Italian offshore engineering and construction giant Saipem and UAE-based fabricator Lamprell.
Saipem’s agreement with the Saudi firm is now set to run until the end of 2027. With this renewal, the company is confirmed in the exclusive list of contractors selected by Saudi Aramco, which are eligible to bid for work orders.
These contracts may relate to both the construction of new investment projects and any projects aimed at maintaining production capacity from Saudi Arabia’s offshore fields. In 2023, Saudi Arabia’s oil production averaged 13.39 million barrels per day, including crude oil, shale oil, oil sands, condensates, and natural gas liquids (NGLs). Crude oil production alone was approximately 9.5 million barrels per day. Production varies due to OPEC+ agreements, with recent data indicating around 8.96 million barrels per day of crude oil in March 2025, potentially rising slightly as OPEC+ eases cuts.
If Saipem is awarded such a contract, it will be carried out by a consortium between Saipem subsidiary Snamprogetti Saudi Arabia and Saipem Taqa Al-Rushaid Fabricators or STAR for short.
The two companies aim to maximise local activities, leveraging the local fabrication yard established in Saudi Arabia in 2008.
As for Lamprell’s deal, the extension of the long-term agreement continues the collaboration between the two, which has been running since 2018. Lamprell has delivered several projects to date and is currently working on several others in its UAE facility.
In 2023, the United Arab Emirates (UAE) produced approximately 3.39 million barrels of oil per day, including crude oil, shale oil, oil sands, condensates, and natural gas liquids (NGLs). Crude oil production alone averaged around 2.96 million barrels per day in September 2024, with projections suggesting an increase to 3.4 million barrels per day by the end of 2025. The UAE aims to reach a production capacity of 5 million barrels per day by 2027.
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