Saipem Awarded Drilling Contracts Worth $800 Million in Middle East, West Africa

Saipem Awarded Drilling Contracts Worth $800 Million in Middle East, West Africa

/ Financial News / Wednesday, 16 November 2022 11:49

Saipem has been awarded new offshore drilling contracts, three in the Middle East and two in West Africa, for a total amount of approximately $800 million, the multinational oilfield services company said in a statement.

This value is considered net of the leasing costs of the vessels used for the works.

In the Middle East, two new contracts are for two high-specification jack-up drilling units, the Perro Negro 12 and Perro Negro 13, chartered by third parties for drilling and workover activities on the specific projects. The duration of the operations will be five years plus two optional years for the first unit and three years plus one optional year for the second unit. Both projects are scheduled to start between the third and fourth quarters of 2023. The third contract encompasses the five-year extension for an existing contract for the high-specification jack-up unit Sea Lion 7, a highly versatile self-elevating drilling unit able to operate in up to 375 feet of water depth.

In West Africa, the two contracts are for the ultra-deep-water segment for drilling operations with the sixth-generation drillship, Saipem 12000.

The first contract has been awarded by Eni Cote d'Ivoire for drilling operations offshore Ivory Coast, which are expected to start in the fourth quarter of 2022 and extend the current activities of the rig in the area by about six months.

The second contract has been awarded by Azule Energy for drilling, completion and testing of development and exploration wells offshore Angola in Block 15/06, operated by Eni Angola S.p.A. The contract will have the duration necessary to drill and complete 12 firm wells (estimated to last 26 months) and include the possibility of extension for an optional term. The project is scheduled to start in 2023 in continuity with the previous works of the rig in West Africa.

With these contracts announced, since the beginning of 2022, Saipem has been awarded new contracts in the offshore drilling segment for a total amount of approximately 1.6 billion EUR equivalent, the statement noted.

Also read: Africa's Oil and Gas Future: Series of Challenges Ahead

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