Saipem snags 200 million USD in offshore contracts

The Scarabeo 8 is a last generation semisubmersible drilling unit. It represents the state of the art of harsh environment and unmanned operation drilling units.

Liza Phase 1 Development prime contractor, Saipem, has been awarded new contracts in Offshore Drilling in Norway and the Middle East totalling over 200 million USD.

The company said on Friday that one contract was signed with the German company Wintershall for the drilling of 2 wells plus 2 optional ones in continuity with previous engagements for operations offshore Norway.

Saipem said the contract will be executed by the sixth-generation semi-submersible rig Scarabeo 8, a drilling unit capable of operations in harsh environments. The rig is expected to be under operation until approximately the second quarter of 2020. With this contract, the Italy-based company consolidates its presence in the North Sea-Norwegian Sector and extends its client base in Offshore Drilling to a new important player.

Furthermore, Saipem has been awarded one contract in the Middle East. This involves a four-year extension of the use of the high specs Jack up Perro Negro 7. Perro Negro 7 is a self-elevating drilling unit capable of operating in water depths of up to 375 feet. Work commenced at the end of the first quarter of 2019. With this long-term commitment, Saipem says it strengthens and confirms its presence in a key area of shallow water operations and in a strategic market for the company overall.

Saipem announced on August 21, 2018 that it had secured contracts for the second phase of ExxonMobil’s Liza development offshore Guyana, to the tune of 700 million USD. These contracts, assigned by Esso Exploration and Production Guyana Limited (EEPGL), an affiliate of ExxonMobil, as the project operator, are in addition to those awarded to Saipem in 2017 for Liza Phase 1.

The company has been ramping-up operations offshore Guyana as preparatory work gets underway ahead of the arrival of the Liza Destiny in Q3 for first oil, expected by 2020.