Saipem has been awarded four new engineering and construction contracts, onshore in Saudi Arabia and offshore in Brazil, for a total value of approximately $4 billion. The company made it known in a statement.
As regards Saudi Arabia, Saudi Aramco has awarded Saipem three contracts for onshore E&C activities. The first two are EPC contracts related to the Jazan Integrated Gasification Combined Cycle project, located near the city of Jizan, in southwest Saudi Arabia. The Package 1 contract includes the gasification unit, the soot and ash removal unit, the acid gas removal unit and the hydrogen recovery unit. The Package 2 contract comprises six trains of Sulfur Recovery Units (SRUs) and associated storage facilities.
The scope of work for both packages, Saipem explains, includes engineering, procurement, construction, pre-commissioning, commissioning support and performance testing of the plants involved. These two packages are part of a project initiated by Saudi Aramco to build the world's largest gas-fired power plant, which will be built alongside the new Jazan refinery and terminal. The plant will use gasification technology, will be fueled mainly with vacuum distillation residues obtained in the refinery, as well as fuel oil with a high sulfur content, and will meet the refinery's electricity needs. A large amount of energy will be exported to the national electricity grid.
The Jazan refinery and terminal project promoted by Saudi Aramco and part of the Jazan Economic City is part of a diversified and sustainable growth strategy for Saudi Arabia's economy that will make the country's energy sector more competitive and dynamic at a global level. global. The Jazan Refinery and Terminal project alone will create more than 1.000 new direct jobs, as well as another 4.000 in related industries.
Saudi Aramco has also awarded Saipem an EPC contract for Sections 4 and 5 of the Shedgum-Yanbu` pipeline, which connects Shedgum to Yanbu`. The scope of work for the third contract involves detailed design, engineering, procurement, installation, commissioning and start-up assistance for the two pipelines, which will be completed in the second half of 2017.
In Brazil, Petrobras has awarded Saipem an Epci contract for the “Lula Norte, Lula Sul and Lula Extremo Sul” submarine project which will be built in the Santos Pre-Salt Basin region, located approximately 300 kilometers off the coast of the states of Rio de Janeiro and Sao Paulo. The scope of work includes the engineering, procurement, fabrication and installation of three subsea pipelines, associated PLETs and Free Standing Hybrid Riser (FSHR) manifolds required for the gas export systems. The pipelines will be installed in the Lula field at a depth of up to 2.200 metres.
The fabrication of the collector system and related subsea equipment will be carried out by Saipem in the new shipyard under construction in Guarujá, Brazil. Offshore activities will mainly be performed by the Saipem FDS2 vessel during the first half of 2016. Delivery of the entire project is scheduled for the third quarter of 2016.
The CEO of the company, Umberto Vergine, described having obtained these contracts as "a great success" for Saipem. “We have been awarded important contracts by two of our main clients at just the right time, in two countries which are fundamental for Saipem's activities. These results are very encouraging for the future,” said Vergine.
