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Saipem S.p.A SAPMF, an Italian engineering and construction services firm, has secured an engineering, procurement, and construction (EPC) contract for an offshore project in Qatar. QatarEnergy LNG, a subsidiary of QatarEnergy, has awarded this contract to Saipem. The project, worth $4 billion, is part of the North Field production sustainability offshore compression complexes program. Saipem will be working on COMP 3A and COMP 3B of the program.
Per the terms of the agreement, Saipem has been tasked with engineering, procurement, fabrication and installation work for six platforms. Furthermore, it will be responsible for laying rigid subsea pipelines spanning 100 km. These pipelines, with diameters of 28 inches and 24 inches, will be made from an alloy that is resistant to corrosion.
The contract also includes the laying of 100 km of subsea composite cables and 150 km of fiber-optic cables. Saipem will also be responsible for the installation of additional subsea facilities.
The award followed another EPC contract that Saipem had won in October 2022. The work on this project is currently in progress. The contract, worth $4.5 billion, is part of the North Field production sustainability offshore compression complexes project, COMP-2.
The North Field is one of the largest natural gas reservoirs in the world located offshore Qatar. The North Field production sustainability offshore compression complexes program was aimed at ensuring long-term production from the field.
QatarEnergy is focusing on raising Qatar’s LNG production capacity. The company is currently working on an LNG expansion program for the North Field. This program covers three fields — the North Field East, the North Field South and the North Field West. This expansion program is aimed at significantly increasing the country’s production capacity from 77 to 142 million tons per annum (mtpa) in 2030.
SAPMF’s Zacks Rank and Key Picks
Currently, SAPMF carries a Zacks Rank #3 (Hold).
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PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. The company stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations. Combined with bullish oil prices, this is expected to boost the company's production and overall profitability.