Saipem signed new contracts in the Offshore in Saudi Arabia and Spain, for a total amount of approximately 700 million USD.

Saudi Arabia

Saudi Aramco has signed with a consortium comprising Saipem and its Saudi Arabian partners TAQA and Al Rushaid a long term agreement for the construction, transport and installation of offshore facilities in the Kingdom, aimed at maintaining the Country’s oil production capacity (Maintain Potential Facilities Programme).

The agreement has a firm duration of approximately seven years, plus two three-year options, and encompasses the engineering, procurement, construction, transport and installation of offshore platforms and pipelines.

A minimum workload is guaranteed during the first four years of the agreement, consisting of 16 platforms and 80 kilometres of sealines, in addition to the lay of the cables, ancillary to the platforms. Saudi Aramco will periodically confirm the scope of subsequent works to be executed, valued on the base of a “price-per-unit” agreed scheme.

Fabrication works will be carried out in a yard currently under construction in Dammam, approximately 400 kilometres east Riyadh, Saudi Arabia, while the offshore activities will be performed by the vessel Castoro II.

Saudi Aramco is expected to issue the first plans and budget allocation in the fourth quarter of 2007.


Spain

In the framework of the project to supply Balearics island of Ibiza and Mallorca with natural gas, ENAGAS has awarded a joint venture between Saipem and Fomento De Construcciones Y Contratas, S.A. (FCC), the contract for the T&I of two 20” offshore pipelines for a total length of approximately 270 km.

The first sealine will connect Playa Devesa in mainland Spain to the landfall in Ibiza at Punta de Cala Gracio, for a length of approximately 123 km, reaching a maximum water depth of 1000 metres; the second sealine will connect Ibiza to the landfall in Mallorca at San Juan de Dios, for a length of approximately 146 km, with a maximum water depth of 800 metres. Saipem’s scope of work includes project management & engineering, offshore survey, transport & installation, trenching & backfilling and pre-commissioning. Offshore activities will be carried out mainly by the vessel Castoro Sei, in different time frames between the beginning of 2008 and the first quarter of 2009.