LNG

Saipem, the Italian subsea company with contracts for LNG project, pipeline natural and oil worldwide reported a more than 40 rise in earnings as the current backlog was almost €30 billion ($32Bln) with over €2Bln in new contracts.

Saipem, the Italian LNG and energy engineering company, has completed the South Gas Compression Plant Pipelines project to increase the life of a substantial number of natural gas wells in the Haradh and Hawiyah fields in Saudi Arabia.

The Saudi Arabian Oil Company (Saudi Aramco) project is aimed at reducing the use of oil and increasing the use of natural gas as the primary fuel for several local industries.

Saipem, based in Milan, said the scope of work encompassed the procurement and construction of a system of pipelines of various diameters, with an overall length of over 700 kilometres (435 miles).

The venture additionally included flowlines, trunklines, and transmission lines, as well as associated facilities for the transportation of gas from various points of storage and distribution inside the facilities, such as liquid station separations, remote headers, gas gathering manifolds and off plot tie-in facilities.

Challenges

“The project presented challenges from a logistics, safety, security and project management point of view,” stated Saipem.

Dhahran-based Aramco has said that increasing natural gas output was a strategic priority and the company had successfully advanced multiple gas projects in 2023.

The Haradh and Hawiyah fields for associated gas are key projects.

Aramco’s Hawiyah Gas Plant expansion is part of the Haradh gas increment programme.

Construction at the Hawiyah Unayzah Gas Reservoir Storage, the first underground natural gas storage project in the Kingdom, has also been completed and injection activities commenced.

Aramco made two large natural gas field discoveries in November 2023 while additionally starting output in a Saudi shale gas basin called South Ghawar.

The two Saudi natural gas field discoveries were made in the Eastern Province and the Empty Quarter regions respectively.

Saudi shale gas

Analysts said that the discovery of more natural gas reservoirs is expected to further Aramco’s strategic plans to increase gas production by over 50 percent with the aim of meeting all domestic demand by 2030.

Earlier in November Aramco announced that it had begun production of unconventional tight gas from its South Ghawar operational area, two months ahead of schedule.

Unconventional tight gas, also known as shale gas, is typically found in reserves where hydrocarbons are tightly trapped within rock layers.

Extracting this gas demands specialised techniques like horizontal drilling and hydraulic fracturing for extraction.

The commissioned facilities at South Ghawar currently have a processing capacity of 300 million standard cubic feet per day of raw gas and 38,000 barrels per day for condensate.

TotalEnergies, the French major and one of four shareholders in the Nigerian liquefied natural gas company, has held talks with the Nigerian President on investing more in the West African nation.

Saipem, the Italian energy and LNG engineering company specializing in subsea work, has signed a letter of award with Abu Dhabi National Oil Company (Adnoc)  for a new contract related to the Hail and Ghasha natural gas development project in the United Arab Emirates.

Saipem said its share of the contract amounts to around $4.1 billion and has been awarded in consortium with the Abu Dhabi-based National Petroleum Construction Company (NPCC).

The project is aimed at developing the resources of the Hail and Ghasha natural gas fields, located offshore Abu Dhabi.

The fields lie in the Ghasha Concession block in water depth of around 328 feet and are expected to start commercial production in the next couple of years.

Saipem said the project scope of work encompassed the engineering, procurement and construction (EPC) of four drilling centres and one processing plant to be built on artificial islands, as well as various offshore structures and more than 300 kilometres (187 miles) of subsea pipelines.

Integrated

“The award is in line with Saipem’s unique capability to deliver integrated onshore and offshore projects, providing its clients with a single and reliable interface for complex full-field developments,” said the Milan-based company.

“Saipem will leverage on its state-of-the-art shallow water offshore vessels, its advanced welding technology for corrosion resistant materials, as well as its renowned engineering expertise,” Saipem added.

“This award reinforces Saipem’s long-standing relationship with ADNOC and further consolidates the company’s presence in Abu Dhabi, which includes an Engineering and Project Execution Centre, as well as a new Offshore Logistic base in Zayed Port,” Saipem explained. 

ADNOC’s partners in the Hail and Ghasha gas development with a concession term of 40 years include Italy’s Eni, Germany’s Wintershall Dea and Austria’s OMV.

The multi-billion-dollar Hail and Ghasha project is also seen as playing a vital role in meeting the UAE’s gas self-sufficiency objectives.

It also comes at a time when a second UAE LNG production project plant is being developed at Al Ruwais Industrial City. The Ruwais LNG project consists of two 4.8 million metric tonnes annum liquefaction Trains with a total nameplate capacity of 9.6 MTPA.

The existing liquefaction plant on Das Island in the Arabian Gulf currently has export capacity of 6 MTPA. 

Saipem, the Italian energy engineering company working on oil, pipeline gas and LNG projects worldwide, said it was awarded new contracts worth $1 billion for crude and gas in Saudi Arabia and the development of underwater drones in Brazil as a new survey underpinned the long-term viability of oil in the energy mix to help finance cleaner alternatives and technologies.

Saipem, the Italian LNG and energy subsea projects developer, has been awarded two contracts worth $850 million, one to open up a Turkish natural gas field in the Black Sea and a second to decommission energy activities in the UK North Sea.

Saipem, the Italian offshore energy and LNG feed-gas specialist, was awarded a new drilling contract worth €400 million ($424M) in the Côte d'Ivoire in West Africa where the Baleine Phase 1 project for offshore oil and associated gas is currently moving forward to maintain the country's status as an African energy hub.

July 27 (LNGJ) - Saipem, the energy and LNG engineering firm specializing in subsea and field preparation activities, said second-quarter revenues increased by 57.3 percent to €2.36 billion ($2.24Bln). The backlog of contracts at the end of June came to €22.70Bln, including €7.75Bln in Offshore Engineering and Construction, €14.07Bln in Onshore E&C, and €885 million in Offshore Drilling.

   “These results confirm the validity of the strategic and organisational choices, which have allowed us to intercept the opportunities of the new investment cycle in our reference sectors,” said Francesco Caio, Chief Executive of Saipem. The company has also now reorganized into four business divisions: Asset Based Services, Energy Carriers, Robotics and Industrialized Solutions, and Sustainable infrastructures and is consequently adjusting its future reporting structure.

Italian energy engineering company Saipem has been awarded an additional $150 million Mozambique LNG contract relating to the “Coral-Sul FLNG” vessel, a production hull set to be onstream later in 2022 in the offshore Rovuma Basin.

Saipem, the leading liquefied natural gas and energy project engineering company, has signed a new contract with the Saudi Arabian Oil Company (Aramco) for the Jafurah Gas Development in the Arab kingdom.

The Saudi project also involves the construction of about 835 kilometres (519 miles) of pipelines.

“The project involves the construction of a hydrocarbon collection system and the transport of gas and condensate to the new Jafurah plant, in the Eastern Province of Saudi Arabia,” said Milan-based Saipem.

The Italian company will also build a system to transport water associated with the separation of the treated gas.

The engineering, procurement and construction contract includes the supply of materials and commissioning of the pipelines for the transportation of gas, condensate and production water.

“The award of this new project from Aramco consolidates a long-standing relationship and Saipem's strategic positioning in the Middle East,” said Francesco Caio, Saipem's Chief Executive.

“The agreement confirms the trust and appreciation of our customers in the project management capacity and in the cutting-edge engineering and technological services that Saipem is able to offer,” stated Caio.

Saipem was recently awarded two new offshore contracts for transportation and installation activities for a total amount of more than $600M relating to Australian LNG and Turkish pipeline natural gas projects.

LNG awards

Saipem was chosen by Chevron Corp. in Australia for the Jansz-lo Compression Project, designing and developing the infrastructure and the gas field located around 200 kilometres offshore the northwest coast of Australia, at water depths of around 1,400 metres.

The Jansz-lo field is part of the Chevron-operated Gorgon LNG Project, which is supplied with feed gas from a group of different offshore fields and is one of the world’s largest LNG plants located on Barrow Island.

Additionally, Saipem is working on the offshore portion of the North Field production project in the Arab Gulf underpinning the Qatar’s LNG expansion.

It has also been contracted along with Technip Energies and Russian firm NIPIGas, a subsidiary of the Gazprom Neft Group, to help develop the Arctic LNG II project for Yamal LNG operator, Russia’s Novatek.