Saipem, JV in Saudi Arabia to relaunch the business with Aramco

February 26, 2020

Abstract : The key characteristic of the partnership is the opportunity to act in comply with the requirements of the Iktva program (In-Kingdom Total Value Add), launched by Saudi Aramco as an integral part of its agreements, in order to reach the localization of the expenditure by 70% within 2021.

MILAN, Feb. 25 (Class Editori) -- Saipem is laying the foundations for a new Saudi joint venture. The group led by Stefano Cao has signed a memorandum of understandings with the construction company of Abdel Hadi Abdullah Al Qahtani & Sons Company (AHQ). The foundations for the creation of a joint venture in Saudi Arabia have been therefore laid, which is able to match the competences and the EPC capacity of Saipem with the knowledge and the experience of AHQ in the logistics, construction and supply chains fields, as a note explained.

The new company is aiming at maximizing the creation of local value and becoming the top supplier of global solutions for the creation of both onshore construction works and EPC projects of onshore pipelines.

"Saudi Arabia has always been a key market for Saipem and our ambition is to keep our leader role as EPC in the country. We are committing in establishing this joint venture together with AHQ, with the aim of matching the synergies to support our customer Saudi Aramco."

"A main characteristic of the partnership is the opportunity to act in comply with the requirements of the Iktva program (In-Kingdom Total Value Add) launched by Saudi Aramco as an integral part of its agreements, in order to reach the localization of the expenditure by 70% within 2021", as Maurizio Coratella, Chief Operating Officer of the Onshore E&C division, has stated.

Last February, 6, Saipem has won some new EPCI (Engineering, Procurement, Construction e Installation) agreements in different countries, reaching a total amount of $500 million. Among these, Saudi Aramco is the first one in the long term agreement field which is in force until next year. The work is including the design, engineering, supply, construction and offshore implementation of a carbon steel pipeline around the network which has already been established along Ju'aymah area and the corresponding platform improvements. (all rights reserved)

(Source:Class Editori)

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