Saipem Secures $550 Million Worth of Offshore Drilling Contracts

Italian offshore services firm Saipem has won two offshore drilling contracts, one in the Middle East and one in the Mediterranean Sea, worth about $550 million in total.

In the Middle East, Saipem said it had ensured the continuity of the ongoing activity of the Perro Negro 7 jack-up drilling unit from the second half of the year by securing a ten-year extension to the existing contract.

The Perro Negro 7 is a jack-up capable of operating in up to 375 feet of water depth. While Saipem did not specifically say it, according to available info, the rig is on a contract with Saudi Aramco. 

"The 10-year extension is a record duration in the area, which in the past had only been granted to an international contractor on limited occasions, and further strengthens Saipem's strategic positioning in the drilling segment," Saipem said.

"After having recently expanded its presence in the area from three rigs in 2021 to seven expected at the end of 2023 thanks to the acquisition of various multi-year contracts, with this contract renewal, Saipem sees, once again recognition of its commitment to executing projects efficiently with attention to safety and the environment in the main "shallow water" market worldwide," Saipem added.

In the Mediterranean Sea, Saipem has won a contract for the utilization of the semisubmersible unit Scarabeo 9 for an estimated period of around six months plus an optional period. The unit is a sixth-generation semisubmersible drilling rig equipped with a dual ram rig and is capable of operating in ultra-deep water, i.e., at depths of up to 12,000 feet.

"The acquisition of this contract confirms Saipem's solid positioning in the Mediterranean drilling market, an area which has been characterized over the years by appreciable stability and is expected to be able to contribute to keeping fleet utilization rates high," Saipem said.

Saipem did not say when the Scarabeo 9 contract was expected to start nor who the client was. The rig is now located offshore of West Africa, according to information from MarineTraffic.com.