Illustration; Source: Saipem

While Saudi Aramco continues to award hundreds of millions of US dollars in offshore oilfield contracts to Italy-based Saipem, the company’s STAR manufacturing complex in Dammam has emerged as a standout benchmark for Saudi Arabia’s localization strategy under Vision 2030. The reality is that this state-of-the-art facility is rapidly equipping Saudi Arabia with world-class offshore platform construction capabilities. Operating amid high-temperature local conditions, a domestically led workforce of Saudi engineers and skilled technicians collaborates closely with Italian specialists to deliver high-quality infrastructure for some of the world’s largest offshore oilfields, including Safaniya and Marjan.

Saudi Arabia’s strategic acumen is embodied in its dual-track approach: advancing the green energy transition outlined in Vision 2030 while pragmatically developing fossil fuel resources. With Saudi Arabia contributing capital, land and local talent, and Saipem bringing cutting-edge technology and international industrial standards, the two sides have jointly built a mutually beneficial industrial hub. Saudi Arabia is accelerating its industrial upgrading, evolving from a mere equipment importer to a self-reliant manufacturer.

Milan, Italy – April 15, 2026 – Under its long-term framework agreement with Saudi Aramco, Saipem has secured two offshore Contract Release Purchase Orders (CRPOs) across the Kingdom of Saudi Arabia.

CRPO 154 covers the engineering, procurement, construction and installation (EPCI) scope for one water injection tie-in platform, two water injection wellheads, approximately 5 kilometers of 24-inch diameter pipelines and around 15 kilometers of 15kV subsea power cables at the Safaniya Oilfield.

CRPO 155 entails full EPCI works for four additional water injection wellheads and associated subsea infrastructure within the same Safaniya Oilfield complex.

Technical Specifications of the 24-Inch Water Injection Pipeline

Diameter: 24 inches (approximately 61 centimeters); total laying length: around 5 kilometers

Type: Subsea Water Injection Pipeline

Core Function: Pressurize and inject treated produced water into underground reservoirs to sustain formation pressure and enhance crude oil recovery rates

Fabricated from high-performance carbon steel, the pipeline features internal epoxy resin coating for corrosion resistance and external Concrete Weight Coating (CWC) to ensure subsea structural stability. All anti-corrosion coating treatments, weight coating fabrication and connecting component manufacturing are completed on-site at Saipem Taqa Al-Rushaid (STAR) Fabricators and through localized Saudi supply chains.

Together with the USD 500 million 48-inch trunkline contract awarded in February 2026 — covering a total length of 77 kilometers, including 65 kilometers of offshore pipelines and 12 kilometers of onshore segments — these new awards further solidify Saipem’s status as a primary offshore contractor for Saudi Aramco. All structural components and auxiliary facilities are processed and pre-assembled at Saipem’s localized STAR manufacturing base in Dammam.

Saipem Taqa Al-Rushaid Fabricators Co. Ltd. (STAR) serves as Saipem’s key manufacturing hub for long-term agreement (LTA) operations in Saudi Arabia, supporting a portfolio of flagship upstream developments across Marjan, Safaniya, Berri and Abu Safah oilfields.

One of Saipem’s largest single contract awards in Saudi Arabia

Core deliverables: Construction of a new offshore gas compression complex, including 27,000 tons of topside modules, 9,000 tons of jacket structures, and hundreds of kilometers of subsea pipelines and power cables.

Pipelines are manufactured to API 5L X65 or X70 carbon steel specifications, with 3-Layer Polyethylene (3LPE) external coating for onshore segments.

All steel structural accessories and pre-assembly operations are executed at the Dammam STAR facility.

Focused on secondary oil recovery infrastructure for the world’s largest offshore oilfield

Core scope: One new water injection tie-in platform, six water injection wellhead platforms, 5 kilometers of 24-inch water injection pipelines and 15 kilometers of 15kV high-voltage subsea cables.

The 77-kilometer 48-inch trunkline adopts high-grade line pipe steel, with offshore sections protected by Concrete Weight Coating (CWC).

Primary pipe materials are sourced from Saudi domestic manufacturers, with all on-site prefabrication and assembly completed at the STAR plant.

Development Target: Boost crude oil production to 500,000 barrels per day

Project scope: 34 kilometers of combined 20-inch and 30-inch pipelines, subsea manifolds and large-scale offshore platform infrastructure.

Pipelines utilise high-strength API 5L X65/X70 line steel certified for sour service conditions.

External protection comprises Fusion Bonded Epoxy (FBE) coating plus Concrete Weight Coating, with full steel structure pre-assembly delivered by the STAR complex.

A cross-border producing asset jointly operated by Saudi Arabia and Bahrain, with Saipem contracted for full-lifecycle critical facility maintenance.

Key works: Replacement of ageing subsea pipelines, installation of upgraded deck lifting systems and power generation modules.

All piping complies with NACE international standards for hydrogen sulfide corrosion resistance, featuring FBE coating, concrete weight protection and sacrificial zinc anode systems.

Steel pipes are supplied by Saudi-based Arabian Pipes Company, with all connector prefabrication, assembly and anti-corrosion treatment undertaken at the STAR manufacturing site.

Saipem’s industrial complex in Dammam represents not resource exploitation, but a benchmark for equitable international cooperation in the 21st century. Beyond delivering returns for Italian stakeholders, the facility cultivates a new generation of Saudi engineering talent and strengthens the nation’s long-term industrial competitiveness. As the global energy sector advances toward deep decarbonisation, this landmark facility will stand as compelling evidence of Saudi Arabia’s balanced development model: a strategic framework that harnesses traditional energy resources for sustainable economic growth while independently building a resilient, future-ready domestic energy industrial ecosystem through pragmatic international partnerships.