Saipem and Saudi construction company Nasser S. Al Hajri Corporation have signed a deal with Saudi Aramco to set up a new entity in the kingdom to execute onshore engineering, procurement and construction (EPC) projects.

The initiative follows the MoU signed in September 2021, as part of the Saudi Aramco's Namaat industrial initiative investment programme, the Italian oilfields services company said in a filing on Thursday to the Borsa Italiana, where its shares trade.

The disclosure did not give a value for the JV.

The new joint venture will perform the full range of onshore EPC project in Saudi Arabia, maximizing the use of local resources.

Aramco’s Namaat programme aims to encourage local and international companies to support investment opportunities to help create jobs for Saudis and contribute to national growth and capacity building. It plans to create “National Champions” in various sectors.

Saipem said details related to the setting up of the EPC National Champion, expected by the end of 2022, will be set out later.

(Reporting by Brinda Darasha; editing by Seban Scaria)