Oilfield giant, Saipem recorded €5.3 billion in revenues for the second quarter of 2023, bolstered by several mega contracts including one for ExxonMobil Guyana’s massive Uaru development. That figure is up from €4.2 billion in the same period last year.
With the Uaru contract, Saipem said the awarded scope of work includes the design, fabrication and installation of subsea structures, risers, flowlines, and umbilicals for a large subsea production facility. Saipem will be utilising its flagship vessels FDS2 and the Saipem Constellation to continue the works. It had initiated limited activities – detailed engineering and procurement.
This project consolidates Saipem’s presence in the country, as it has been previously awarded four other subsea contracts by ExxonMobil Guyana for developments in the same area, including Liza Phase 1 and 2, Payara, and Yellowtail.
The Uaru Development Project will target 250,000 barrels per day (bpd), the highest production capacity of any floating production vessel planned for the Stabroek Block yet. First oil could be achieved as early as the fourth quarter of 2026.
In this quarter, Saipem also got a contract from Saudi Aramco, which involves the engineering, procurement, construction and installation of five platforms and related subsea pipelines, flowlines and cables in the Marjan offshore field with an entirely on-site fabrication scheme.
There was also a contract from Turkish Petroleum OTC for the second phase of the Sakarya FEED and EPCI project involving the engineering, procurement, construction and installation of a pipeline to be installed at a depth of 2,200 metres in the Turkish waters of the Black Sea. The offshore operations will begin in the summer of 2024 and will be conducted by Saipem’s flagship vessel Castorone.
Its final contract received for the quarter was from EnQuest Heather Limited for the decommissioning of the Thistle A platform, located in the British sector of the North Sea, approximately 510 kilometres north-east of Aberdeen and at a depth of 162 metres. Saipem’s activities consist of the engineering, preparation, removal and disposal of the jacket and topsides, with possible extension to further subsea structures. The work will be carried out by the Saipem 7000.
Saipem reported that its capital expenditure for the first half of the year amounted to €139 million; €86 million in the corresponding period of 2022.
In the first half of 2023, Saipem was awarded new contracts amounting to a total of €6.69 billion (€4.23 billion in the corresponding period of 2022). The backlog as of June 30, 2023 amounted to €25.36 billion (€12.37 billion in Asset Based Services, €10.71 billion in Energy Carriers and €2.28 billion in Offshore Drilling), of which €5.3 billion are to be executed in 2023.
