Saipem awarded new E&C Onshore contracts worth $1 billion

 June 27, 2012; h 11:05

San Donato Milanese (Milan), 27 June 2012– Saipem has been awarded new E&C Onshore contracts in Saudi Arabia and Nigeria worth approximately $1 billion.

In Saudi Arabia, Saipem has signed a lump sum EPC contract for the Naphtha and Aromatics Package (RP2) of the Rabigh II Project with Saudi Aramco and Sumitomo Chemical, for the expansion of the integrated refinery and petrochemicals complex in the city of Rabigh, located in north of Jeddah, on the Western coast of Saudi Arabia.

The scope of work includes the engineering, procurement and construction of two processing units: a Naptha Reformer Unit and an Aromatics Complex. The project will be completed by the fourth quarter of 2015.

The Petro Rabigh complex, whose original production was more than 20 million tons of petroleum and petrochemicals products per year, will process an additional 30 million standard cubic feet of ethane per day and 3 million tons of naphtha per year after the expansion.

In Nigeria, Saipem has been awarded an EPC contract for the Otumara-Saghara-Escravos Pipeline Project by Shell Petroleum Development Company, which will be developed approximately 65 kilometres north-west of Warri.

The contract encompasses the engineering, procurement, fabrication and commissioning of a network of pipelines, ranging in diameter from 12 to 4 inches, for a total length of 40 kilometres, in a swamp area, to connect the client’s flowstations in the Otumara, Saghara and Escravos fields.
The project, scheduled to be completed in 18 months, is strategic for Shell in order to comply with Nigerian Environmental Regulation, which targets zero flaring in the country.

Furthermore, Saipem has agreed to changes in the scope of its work on the existing Gorgon LNG jetty and marine structures project in Australia.

Saipem is organised into two Business Units: Engineering & Construction and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and execution of large-scale offshore and onshore projects, and technological competences such as gas monetisation and heavy oil exploitation.

Website: www.saipem.com
Switchboard:+39-02520.1
Shareholder Information:
Saipem S.p.A. - Via Martiri di Cefalonia, 67 - 20097 San Donato Milanese (MI) – Italy

Relations with Institutional Investors and Financial Analysts:
Tel.:+39-02520.34653 - Fax: +39-02520.54295
E-mail: investor.relations@saipem.com