Italian engineering group Saipem has secured a contract worth about $500 million from Saudi Aramco to support the next phase of expansion at the Safaniyah oilfield, the largest offshore oilfield in the world.
The Safaniyah field, located off Saudi Arabia’s coast, currently produces around 1.3 million barrels of oil per day. Maintaining output at that scale requires continuous upgrades and new infrastructure, making the field a long-term investment priority for Aramco.
Saipem said the contract was awarded under Aramco’s long-term agreement (LTA) framework for offshore projects.
The scope covers engineering, procurement, construction and installation (EPCI) work for a 48-inch trunkline stretching roughly 77 kilometres, with most of the line laid offshore and a smaller section running onshore. The project also includes related subsea facilities.
Although Saipem did not disclose the specific contract reference, industry sources say it is linked to one of several EPCI packages Aramco is expected to award in the coming weeks as part of its ongoing offshore expansion programme.
Offshore installation activities will be carried out by Saipem’s vessels already operating in the region, while fabrication work will take place at the company’s Saudi-based yard in Dammam.
The award further strengthens Saipem’s position in Saudi Arabia, where it has emerged as one of the main beneficiaries of Aramco’s LTA scheme. The contractor won additional offshore contracts late last year tied to other major Saudi developments.
Speaking previously on Aramco’s offshore investment outlook, Saipem chief executive Alessandro Puliti said the LTA framework remains active and resilient, driven largely by projects aimed at replacing ageing infrastructure and boosting production efficiency.
Aramco’s offshore LTA market has averaged $2–3 billion annually in recent years and expanded further in 2025, supported by multi-billion-dollar investments across key fields, including Zuluf and Safaniyah, as the company continues to prioritise long-term upstream capacity and gas-led growth.
