Italian offshore engineering firm Saipem announced it has secured a $500 million offshore engineering contract under a long-term agreement with Saudi Aramco.

The project is located at the Safaniya oil field in Saudi Arabia—one of the world's largest offshore oil fields. The scope of work includes engineering, procurement, construction, and installation of a 48-inch trunkline pipeline along with associated subsea facilities.

The pipeline spans approximately 77 kilometers, comprising a 65-kilometer offshore section and a 12-kilometer onshore section. Offshore construction will be executed by Saipem's fleet currently deployed in the region.

Manufacturing tasks will be carried out at Saipem's Takarushayid manufacturing plant in Dammam.

This contract will further consolidate Saipem's long-term business presence in Saudi Arabia and deepen its strategic partnership with Saudi Aramco.

In spring 2025, the parties renewed their long-term agreement, extending the cooperation period to 2027. Following the renewal, Saipem officially joined Saudi Aramco's exclusive contractor list, qualifying to bid on new projects and maintenance works.

Over the past two years, Saudi Aramco has awarded Saipem offshore engineering contracts worth billions of dollars.

Recent developments also extend to drilling rig operations: In January 2026, Saipem announced that its jack-up drilling rig “Perro Negro 7” would resume operations in Saudi Arabia for Saudi Aramco.

Built in 2008, the rig initially secured an Aramco drilling contract in 2011, which was renewed for ten years in June 2023. The contract was suspended for 12 months in 2024, with the suspension period to be made up upon completion, ultimately extending the contract term to 2034.