Saipem Secures Major Offshore Contract from QatarEnergy LNG for North Field Sustainability

Saipem Awarded $4 Billion Offshore Contract

Italian energy engineering group Saipem has been awarded a significant offshore engineering, procurement, construction, and installation (EPCI) contract by QatarEnergy LNG. The overall contract is valued at approximately $4 billion, with Saipem's share amounting to roughly $3.1 billion. This major agreement, announced in September 2024, is part of the North Field Production Sustainability Offshore Compression Programme, specifically covering the combined COMP3A and COMP3B phases. The primary objective of this program is to sustain natural gas production levels from the vast North Field reservoir, located offshore the northeast coast of Qatar.

Project Scope and Location

The North Field is recognized as the world's largest non-associated natural gas field, holding over 14% of global gas reserves. The newly awarded contract underscores Qatar's ongoing efforts to maintain its position as a leading global supplier of liquefied natural gas (LNG). Saipem's scope of work under this EPCI contract is extensive and is expected to span approximately five years. It includes:

• The engineering, procurement, fabrication, and installation of six platforms.
• Laying approximately 100 kilometers of corrosion-resistant alloy rigid subsea pipelines, with diameters of 28 inches and 24 inches.
• Installing 100 kilometers of subsea composite cables.
• Deploying 150 kilometers of fiber optic cables.
• Various other subsea facilities essential for the project.

This project is a collaborative effort, with Saipem partnering with China's Offshore Oil Engineering Co (COOEC) for the overall $4 billion contract.

Strategic Importance and Previous Engagements

This latest contract further solidifies Saipem's strong presence and track record in Qatar. It follows a previous significant award in October 2022, where Saipem secured an EPC package valued at approximately $4.5 billion for the North Field Production Sustainability Offshore Compression Complexes Project – EPC 2, which is currently being executed. The continuous investment in the North Field Production Sustainability program highlights QatarEnergy LNG's commitment to ensuring a stable and reliable natural gas supply for global markets, aligning with the country's broader strategy to enhance its LNG production capacity to 142 million tons per annum by 2030.

Commitment to Energy Sustainability

The North Field Production Sustainability Offshore Compression Programme is crucial for maintaining the output of the North Field, which is vital for Qatar's energy economy. Saipem, a global leader in engineering and construction for the energy sector, continues to play a pivotal role in these large-scale developments, contributing its expertise to complex offshore projects aimed at long-term energy security and sustainability.