Italian engineering firm Saipem has been awarded a significant offshore contract by Saudi Aramco to expand pipeline infrastructure at the Safaniya oil field, the company announced Wednesday.

The contract, issued as a Contract Release Purchase Order (CRPO), falls under an existing Long-Term Agreement between the two energy giants. 

According to the project’s details, the contract centres on the engineering, procurement, construction, and installation (EPCI) of a massive 48-inch diameter trunkline designed to enhance the transport capacity of the offshore oil field.

The project will focus on the installation of approximately 77 kilometres (nearly 48 miles) of new pipeline, including a 65-kilometer offshore trunkline and 12 kilometers of onshore pipeline segments.

Saipem will also be responsible for the associated subsea facilities and infrastructure required to integrate the new line into the existing Safaniya network.

By utilizing the CRPO framework, Saudi Aramco can authorize Saipem to begin this specific scope of work immediately under pre-negotiated terms, bypassing the need for a new standalone contract.

Saipem plans to leverage its existing regional footprint to execute the project. Offshore installation will be managed by the company’s fleet of construction vessels currently stationed in the Persian Gulf.

In a move that reinforces the kingdom's "In-Kingdom Total Value Add" goals, the fabrication of the pipeline components and subsea structures will take place at the Saipem Taqa Al-Rushaid Fabricators Co. Ltd. yard in Dammam. 

This facility serves as the hub for Saipem’s industrial presence in Saudi Arabia, providing local jobs and technical expertise.

"The project will draw on our extensive experience in delivering strategic pipelines and offshore infrastructure across the region," a Saipem spokesperson said, adding that the work will adhere to rigorous international standards for safety, quality, and environmental protection.

This award reinforces Saipem’s position as a key partner in Saudi Arabia’s efforts to maintain and expand its offshore production capabilities through robust midstream infrastructure.