Saudi Aramco awards Italy’s Saipem $500 million offshore contract

RIYADH — Saudi Aramco awarded Italian engineering and construction group Saipem a new offshore contract valued at approximately $500 million, further strengthening long-standing ties between the Saudi energy giant and one of Europe’s leading energy services companies.

According to company statements, the contract covers engineering, procurement, construction and installation (EPCI) works for offshore facilities in Saudi Arabia. The scope is expected to include subsea pipelines, platforms and related infrastructure designed to support the expansion and maintenance of offshore oil and gas production capacity.

The award forms part of Aramco’s broader investment program aimed at sustaining maximum production capacity while enhancing operational efficiency and reliability across its offshore assets in the Arabian Gulf.

Strengthening offshore capacity

Saudi Aramco continues to pursue strategic offshore developments as it balances global energy demand, production targets and long-term energy transition goals. The company has repeatedly emphasized the importance of maintaining spare capacity and reinforcing upstream infrastructure to ensure supply stability.

Saipem, which has decades of experience operating in the Middle East, is expected to deploy specialized vessels and advanced installation technologies for the project. The company has been involved in numerous offshore developments in Saudi Arabia, making the Kingdom one of its core markets.

The contract is likely to contribute significantly to Saipem’s order backlog, providing visibility on revenues over the coming years amid a stronger global outlook for offshore energy investment.

The award comes as offshore engineering activity has picked up worldwide, driven by sustained oil prices, energy security concerns and renewed investment in upstream projects. Major oil producers, particularly in the Gulf region, have accelerated capital expenditure to expand capacity and modernize infrastructure.

Saudi Arabia has been investing heavily in both conventional hydrocarbon projects and emerging energy initiatives, positioning Aramco as a central player in global energy markets. Offshore developments remain a key pillar of that strategy.

The contract also highlights continued industrial cooperation between Saudi Arabia and Italy, reinforcing economic ties between the two countries. Large-scale offshore projects typically support a broad supply chain, including fabrication yards, maritime services and engineering teams across multiple regions.

The award underscores Saudi Aramco’s ongoing commitment to investing in offshore production and Saipem’s role as a key contractor in the global energy services sector.