Saipem Wins $4 Billion Contracts from Total in Offshore Angola

By Liam Moloney

ROME--Saipem SpA (SPM.MI), Italy's biggest oil services company by revenue, said Wednesday it won two contracts in offshore Angola totaling more than $4 billion, as it seeks to boost its order backlog with more profitable contracts.

In a statement, Saipem said the two contracts were awarded by Total SA (TOT) for the Kaombo field development, in Block 32 offshore Angola.

The first contract, covering engineering, procurement, installation and commissioning, is worth more than $3 billion and involves two floating production storage and offloading units, or FPSO.

The Milan-based company also said Total awarded it a seven-year contract worth about $1 billion for the operation and maintenance services of the two vessels.

"This contract is in line with Saipem's strategy of pursuing growth opportunities in high complexity Floaters and FLNG [floating liquefied natural gas] construction in specific geographic areas, such as Asia Pacific and Africa," said Chief Executive Umberto Vergine in the statement.

Saipem has set up a floaters business unit to capture part of the growing segment in the oil industry that commands good margins.

Write to Liam Moloney at [e-mail]

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