Business
Saipem Secures 2 New Offshore Contracts Worth $1B From Saudi Aramco
Saipem Secures 2 New Offshore Contracts Worth $1B From Saudi Aramco
About this update from Saipem S.p.a.
Saipem S.p.A SAPMF, an Italian offshore services firm, has secured two contracts for offshore work in Saudi Arabia. These contracts are part of a long-standing agreement between the Italian firm and oil giant Saudi Aramco. These two contracts are valued at approximately $1 billion. Under these contracts, Saipem will work on the Marjan, Zuluf and Safaniyah oil fields.For the first contract, Saipem has been tasked with engineering, procurement, construction and installation (EPCI) of three production deck modules (PDMs). It will install 33 kilometers of subsea rigid pipelines with diameters of 12 inches and 16 inches. Further, the company will also lay 34 kilometers of subsea power cables. The infrastructure included in the first contract will be used for the Marjan oil and gas field.The second contract also includes EPCI of three jackets and five PDMs. Alongside these, Saipem is also responsible for installing subsea rigid pipelines spanning 22 kilometers with a diameter of 16 inches and laying 35 kilometers of subsea power cables. The second contract involves the installation of these infrastructures at the Zuluf and Safaniyah oil fields.Saipem will utilize its construction vessels working in the region to complete the offshore work related to both projects. The fabrication work will be executed at Saipem’s fabrication yard in Saudi Arabia, known as Saipem Taqa Al-Rushaid Fabricators. The goal of completing the fabrication in Saudi Arabia itself is to bolster the capabilities of the local industry.Zacks Rank and Key PicksCurrently, SAPMF carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the energy sector are PEDEVCO Corp. PED, MPLX LP MPLX and VAALCO Energy EGY. PEDEVCO and MPLX presently sport a Zacks Rank #1 (Strong Buy) each, while VAALCO Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.PEDEVCO Corp. is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. The company stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the U.S., as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.MPLX LP owns and operates a...