Italy's Saipem signs investment MoU with Saudi Aramco

Saipem said the new company would carry out E&C activity in the energy and infrastructure industrial sector

  
Image used for illustrative purpose. A staff member gestures on the Saipem 10000 deepwater drillship in Genoa's harbour, Italy, November 19, 2015.

Image used for illustrative purpose. A staff member gestures on the Saipem 10000 deepwater drillship in Genoa's harbour, Italy, November 19, 2015.

REUTERS/Alessandro Garofalo

MILAN - Italian energy services group Saipem has signed an agreement with Saudi Aramco to examine setting up a company to do engineering, procurement and construction (EPC) work in Saudi Arabia.

The agreement is part of the Namaat Investment Industrial Program unveiled by Saudi Aramco on Sept. 7 designed to drive economic growth and diversification in the Kingdom.

The Program includes 22 memoranda of understanding in sectors such as energy and the chemicals supply chain with a series of companies including Solvay, Veolia , Halliburton and Schlumberger.

In a statement on Tuesday Saipem said any new company, set up with local partners, would work in energy and infrastructure with the aim of creating an "EPC national champion".

Saipem, which has a framework agreement with Saudi Aramco it renewed earlier this year, has a fabrication yard in Saudi Arabia.

A market leader in subsea exploration and construction, Saipem is looking to develop new lines of business to meet an increasing client focus on green technologies.

(Reporting by Stephen Jewkes; editing by Giulia Segreti and Jason Neely) ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))


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