Yesterday afternoon (after the closure of Piazza Affari) the San Donato Milanese group announced that it had been awarded a new contract in the onshore E&C segment worth approximately 850 million US dollars, for the engineering, procurement, construction and commissioning activities for the “Feed Pipelines for New Refinery Project (NRP)” relating to the development of the new Al Zour refinery, located in southern Kuwait. The contract was awarded by Kuwait Oil Company, a subsidiary of the Gulf country's national oil company, Kuwait Petroleum Corporation.
In detail, the agreement provides for the construction of a system of pipelines of various diameters, approximately 450 km long, for the transport of crude oil and gas from various collection and distribution points of the Kuwait Oil Company to the new refinery in Al Zour. The project also includes the construction of the transport network for refined products towards the storage areas present in the Mina Al Ahmadi refinery, which will also be used to supply the Northern Power Station owned by the Ministerial Body for water and electricity. The awarding of this new contract is undoubtedly positive news for Saipem shares which have been under pressure in recent sessions, thanks to the weakness of oil prices.
