Saipem awarded contracts worth $880m as rumours of Subsea 7 combination emerge

Italy’s Saipem has been awarded a subsea contract by ExxonMobil’s Esso Exploration and Production Guyana for the proposed Payara development project in the Stabroek block offshore Guyana

The contract scope includes subsea structures, risers and flowlines and is worth in the region of $880m. Flagship vessels FDS2 and Constellation will perform the offshore operations.

Stefano Cao, CEO of Saipem, commented: “The award of this new contract strengthens Saipem’s presence in Guyana. The long-term basis of our cooperation with our clients is at the very foundation of our business model. Working with ExxonMobil, especially on the continued oil & gas development projects in Guyana, represents both an opportunity and a responsibility to preserve our relationship with stakeholders through sustainable performance. Our relentless attention to safety, environment, innovation and cost efficiency are key to consolidate our position as one of the leading companies in the offshore subsea”.

Saipem was also awarded variation orders for additional works linked to ongoing offshore E&C projects in Saudi Arabia, Azerbaijan and in the North Sea. The overall value of the contracts, together with the contract in Guyana, is worth around $880m.

Separately, Bloomberg is reporting today that Saipem is considering a combination with Kristian Siem’s Subsea 7 as it seeks to grow in order to weather the industry downturn. According to Bloomberg, Subsea 7 has a market value of $3.2bn while Saipem is valued at $4.8bn. No final decisions has been made, the report stressed, and there is no certainty that deliberations will lead to a transaction it quoted sources as saying.

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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