LNG

Saipem, the Italian energy and LNG engineering company specialising in subsea and oil and gas development projects and pipelines, posted soaring third-quarter revenues of more than €3 billion ($3.2Bln) as global demand surged.

Saipem said revenues to the end of September 2023 amounted to €3.02Bln compared with €2.85Bln in the same three months of 2022.

Quarterly gross earnings increased to €230 million versus €168M in the prior-year quarter. Net profits in the quarter came in at €39M versus a loss of €8M in the same quarter last year.

The Milan-based company said new contracts added to the backlog in the first nine months of 2023 amounted to €11.92Bln, an increase from the €6.92Bln in the corresponding period of 2022.

The backlog as of September 30, 2023 amounted to a total of €27.57Bln. These contracts comprised €15.08Bln in asset-based services, €10.33Bln in Energy Carriers and €2.15Bln in Offshore Drilling of which €2.69Bln was being completed in 2023.

LNG awards

Saipem won contracts earlier in 2023 with three linked to increased LNG production in Angola, Trinidad and Papua New Guinea.

“Group performance further improved with another quarter of growth in terms of revenues, margins, net result and cash generation, confirming the trend already recorded in the first six months of the year,” said Saipem.

“The improvement is recorded in the Offshore, Engineering and Construction and Drilling divisions,” Saipem added.

Saipem is also showing continued traction in the Middle East. After the close of the quarter, on October 5, Saipem, in consortium with National Petroleum Construction Company (NPCC), signed on behalf of Abu Dhabi National Oil Company a contract related to the Hail and Ghasha development project-package one in the United Arab Emirates.

Saipem said its share of the contract amounted to around $4.1Bln. The project is aimed at developing the resources of the Hail and Ghasha natural gas fields located offshore Abu Dhabi.

The project scope of work encompasses 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 of subsea pipelines.

Adriatic FSRU

As part of the domestic Italian LNG build-out Saipem was awarded a contract by Italian gas system operator SNAM for the construction of the associated facilities for the new Floating Storage and Regasification Unit (FSRU) to be located in the Adriatic Sea offshore Ravenna as Italy’s fifth import terminal.

The contract, awarded jointly via a temporary venture with two other Italian companies Rosetti Marino and Micoperi, comprises the EPC and installation of a new offshore facility and for the docking and mooring of the FSRU.

The latest Italian floating terminal will be connected to shore via a 26-inch offshore pipeline of 8.5km length, plus a 2.6 km onshore pipeline and a parallel fibre optic cable.

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 offshore energy and LNG engineering specialist, was awarded two contracts worth €1 billion ($961 million) by a joint venture in the Côte d'Ivoire in West Africa to develop the Baleine Phase 1 project for offshore oil and associated gas and to maintain the country's status as an African energy hub.

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.