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Saudi Aramco contracts US$500M pipeline for Safaniya field
Saudi Arabia’s state energy producer has awarded a contract for construction of a new trunk pipeline linking a huge offshore oil field to an onshore exporting network
Saudi Aramco has contracted a European engineering group to provide and install a main export pipeline from what was the world’s largest offshore oil field in the Middle East Gulf.
Saipem has won a US$500M contract to build and install a 48-inch trunkline from the Safaniya field to an onshore terminal under an existing long-term agreement with the Saudi Arabian state-backed energy group.
Offshore operations will be carried out by Saipem’s construction vessels currently deployed in the region during the rest of this decade.
The Milan, Italy-headquartered contractor is responsible for engineering, procurement, construction and Installation (EPCI) of the 77-km pipeline, with around 65 km laid offshore and another 12 km onshore, as well as associated subsea facilities in the Safaniya oil field.
Pipe will be manufactured at Saipem’s Saudi Arabian fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co, in Dammam.
Discovered in 1951 just 3 km offshore, Safaniya has been in production since 1957 with output peaking at 1.5M barrels per day in the early 1980s.
Geologists in Saudi Aramco estimate the field initially held around 37bn barrels of oil but a significant amount of these reserves have since been extracted and produced.
But, there are still decades of production ahead for the offshore field, leading to further phases of redevelopment and infrastructure construction and installation at Safaniya.
First established in 2007, Saipem Taqa Al-Rushaid Fabricators is a limited-liability partnership between Taqa Al-Rushaid for Marine Works and Saipem.
Riviera’s Offshore Support Journal Conference, Middle East will be held on 8-9 December 2026. Use this link for more information and to register for the event.
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