Saipem CEO says Saudi contracts part of natural gas shift

Thu, 2019-07-11 00:06

ROME: Two contracts signed in Saudi Arabia for $3.5 billion by
Italy’s oil contractor Saipem are part of a shift in the
company’s strategy to focus more on natural gas, Chief Executive
Stefano Cao said on Wednesday. Saipem said on Tuesday it won two
new contracts from Saudi Aramco for the development of land
facilities of the Berri and Marjan gas fields, which are both
located in the Arabian Gulf. The gas contracts announced on Tuesday
“confirm that this is the fundamental strategy for our
company,” Cao said.
Saipem shares rose 2.9 percent in Milan on Wednesday, outperforming
a 0.8 percent rise in Italy’s blue-chip index.
“The news is very positive and improves the visibility of our
estimates on 2020-2022, in particular for the E&C (Exploration
and Construction) onshore division,” broker Equita said.
Stefano Cao met in Milan on Wednesday with Filipe Nyusi, the
president of the Republic of Mozambique, where Saipem last month
won a $6 billion exploration, procurement and construction contract
for the Anadarko Mozambique liquefied natural gas project.
The Saipem CEO said Mozambique, a gas producer, would become one of
the most important countries in the company’s portfolio. “In
the energy transition (toward renewables) the gas chain will play a
fundamental role,” Cao said.

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Source: FS – All-News-Economy
Saipem CEO says Saudi contracts part of natural gas shift