Saipem wins new contracts for a total value of 650 million dollars and the title run to Business Square. Saipem's focus on offshore E&C and offshore drilling together with OPEC+'s surprise or not decision to further cut crude oil production (in addition to the 2 million bpd cut at the October meeting) are rewarding the title of the company in Piazza Affari, which scores over 4,5%. The current price of Saipem shares is 1,447 euros per share, down by -5,64% in one month and up by +126,94% in 6 months, while since the beginning of the year the stock has gained more than 22%, from the abyss in the stock exchange after the capital increase.
In terms of orders, the company has been awarded three new offshore contracts (Angola, the North Sea and Saudi Arabia) and two contracts for competitive front-end engineering design for gas development projects. Let's see them in detail.
Saipem shares soar after new offshore contracts
The first contract, a note explains, was awarded to Saipem by Azule Energy for the Agogo Full Field Development project, a deepwater greenfield development located approximately 180 kilometers off Angola and approximately 20 kilometers west of the N'Goma FPSO (West Hub), operational since November 2014. Saipem's assets involve the engineering, procurement, construction and installation (EPCI) of rigid pipe-in-pipe flowlines with associated subsea structures. Saipem will mobilize the Saipem FDS2, its state-of-the-art vessel for offshore installations.
The second contract was instead awarded to Saipem by EnQuest for the decommissioning of existing infrastructure in the Heather oil field, located in the British sector of the North Sea, approximately 460 kilometers north-east of Aberdeen. The contract includes the engineering, preparation, removal and disposal of the upper jacket of the Heather platform, an activity for which the semi-submersible crane vessel Saipem 7000 will be used.
The third contract was awarded under the Long Term Agreement with Aramco in Saudi Arabia. Here, Saipem will carry out the engineering, procurement, construction and installation of an offshore platform topside and associated subsea system of hoses, umbilicals and cables.
The contracts in Trinidad & Tobago and in Papua New Guinea
In addition, Saipem has been awarded two competitive front-end engineering design contracts for projects of gas development. The first, assigned by Shell Trinidad & Tobagorelates to the development of the Manatee natural gas field. The second contract was awarded to Saipem, in collaboration with PT Tripatra Engineers and Constructors and Daewoo Engineering & Construction Co., from Papua LNG Development. This concerns the development of upstream structures for the supply of the Papua LNG natural gas project in Papua New Guinea.
