Saipem nets over $200 million in new offshore drilling contracts

Italian offshore contractor Saipem has been awarded new contracts in offshore drilling in Norway and Middle East totaling over $200 million.

Saipem said on Friday that one contract was signed with the German company Wintershall for the drilling of two wells plus two optional ones in continuity with previous engagements for operations offshore Norway.

The contract will be executed by the sixth-generation semi-submersible rig Scarabeo 8, a drilling unit capable of operations in harsh environments.

The rig is expected to be under operation until approximately the second quarter of 2020.

According to Bassoe Offshore, the rig’s dayrate for this contract is around $295,000. Bassoe further states that the contract start date is January 5, 2020 and the end date is May 4, 2020.

“With this contract, Saipem consolidates its presence in the North Sea-Norwegian Sector and extends its client base in offshore drilling to a new important player,” Saipem said.

Middle East gig

Furthermore, Saipem has been awarded one contract in Middle East, which involves a four-year extension of the use of the high-spec jack-up Perro Negro 7.

Perro Negro 7 is a self-elevating drilling unit capable of operating in water depths of up to 375 feet. Work started at the end of the first quarter of 2019.

Information on Bassoe’s website shows that the dayrate for the jack-up rig under the contract in Saudi Arabia with Saudi Aramco is around $70,000. The contract is set to end on December 31, 2022.

“With this long-term commitment, Saipem strengthens and confirms its presence in a key area of shallow water operations and in a strategic market for the company overall,” Saipem concluded.

Drilling business sale talks 

In related news, Saipem was recently reported by Bloomberg to be in talks for the sale of its drilling businesses, both onshore and offshore.

According to the financial news giant, the Italian oilfield services provider is in discussions with interested parties to divest its drilling units in two separate transactions.

Bloomberg based its report on information provided by unnamed sources familiar with the matter, who also said that Saipem, also involved in engineering and construction business, might elect not to sell the drilling business.

Offshore Energy Today has reached out to Saipem, seeking confirmation of the report. A Saipem spokesperson declined to comment.

Offshore Energy Today Staff

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