Subsea, CO2 capture and drilling contracts drive Saipem backlog

Milan, Italy-headquartered Saipem reported a total group backlog of €32,671M (US$37,185M) at the end of March, boosted by orders and contracts for engineering, installing subsea infrastructure for major hydrocarbon energy projects, and rising rates for offshore drilling rigs and ships.

Saipem’s contract backlog for asset-based services, including engineering, installing and commissioning subsea infrastructure and other field development projects was €21,053M, and it was €10,384M for energy carriers which includes engineering, construction and commissioning of carbon capture and storage plant and ship loading systems.

Its contract backlog from offshore drilling services was €1,234M with its drilling fleet almost fully utilised in Q1 2025, except drillship Saipem 12000 and the jack up Perro Negro 10, which were undertaking class recertification work, and jack up Perro Negro 9, when it was returned to a supplier in March.

Key contract highlights in Q1 2025 were for the engineering, procurement, construction, and installation (EPCI) of subsea structures, umbilicals, risers and flowlines for ExxonMobil’s next deepwater oil project, Hammerhead in Guyana, and EPCI activities for the repair of damaged subsea pipelines in Qatar for QatarEnergy.

These contract backlog figures demonstrate the expected high levels of offshore upstream activity anticipated for the next few years, as energy companies ramp up capital investment in oil and gas projects, particularly in the Middle East and Latin America.

In February 2025, Saipem and Subsea 7 confirmed they have agreed terms for a merger, in a deal will create an energy services leader with a combined backlog of €43Bn.