Milan-headquartered Saipem (an Italian multinational oilfield services company) has been awarded a new onshore engineering, procurement, and construction contract (EPC) in Saudi Arabia for the Uthmaniyah Gas Compression Plant project, with Saipem's share of the contract valued at approximately USD 1.04 billion and a duration of approximately 42 months.

Contract Structure and Joint Venture

The contract was signed by Saipem Nasser Saeed Al-Hajri Contracting Company, known as SNSH, a jointly controlled company owned by Saipem and Nasser Saeed Al-Hajri and Partners Company for Contracting, referred to as NSH.

The arrangement combines Saipem's engineering and project management capabilities with NSH's construction expertise. NSH is described as one of the leading Saudi onshore construction companies.

The formation of SNSH in Saudi Arabia reflects an intention to maximize the use of local resources and expertise in executing the project.

Scope of Work

The project encompasses full engineering, procurement, and construction activities for a new compression plant that will serve the non-associated gas field of Uthmaniyah.

According to Saipem, the new compression plant is designed to extend the production life of the Uthmaniyah field, which the company states will help support the growing energy demand of the Kingdom of Saudi Arabia. No further technical specifications regarding the plant's capacity or output targets were disclosed in the announcement.

National EPC Champion Program

The Uthmaniyah Gas Compression Plant holds a particular significance beyond its scale, as it represents the first EPC project awarded under what is designated as the National EPC Champion Program.

The program is described as being designed to develop a national EPC champion capable of executing the full range of onshore EPC activities while maximizing the use of local resources and expertise within Saudi Arabia.

The establishment of SNSH as a jointly controlled entity between Saipem and NSH is directly connected to this program's objectives. Saipem's announcement positions the award as an early and concrete outcome of that broader national industrial development initiative.

Strategic Significance for Saipem

Saipem stated that the award strengthens its presence in the Kingdom of Saudi Arabia and confirms its commitment to contributing to the development of the country's energy infrastructure.

The company also noted that the project promotes the use of local skills and resources, consistent with the objectives embedded in the National EPC Champion Program framework.

The contract adds to Saipem's onshore portfolio at a time when the company operates across five business lines: Asset-Based Services, Drilling, Energy Carriers, Offshore Wind, and Sustainable Infrastructures.

Saipem operates five fabrication yards and maintains an offshore fleet of 17 construction vessels, of which it owns the fleet outright, along with 12 drilling rigs, nine of which are owned. The company is listed on the Milan Stock Exchange, is present in more than 50 countries, and employs approximately 30,000 people of over 130 nationalities.

Powering Upstream and Downstream Intelligence Across Saudi Arabia

How much revenue is slipping through the cracks because your team lacks visibility into where the Saudi Arabia oil and gas sector is heading next? In a region where multi-billion-dollar projects move fast and competition for contracts is fierce, acting on incomplete intelligence is a risk your business cannot afford to take.

The Global Project Tracking (GPT) platform by Blackridge Research was built to give energy companies, contractors, and investors a decisive edge. By consolidating the full project lifecycle into a single, continuously updated intelligence resource, GPT ensures your strategy is always grounded in the most current market reality across Saudi Arabia.

From early-stage exploration initiatives in Saudi Arabia to major refinery expansions across the Gulf, our platform covers the entire spectrum of oil and gas activity so you never miss a critical opportunity window.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

See the full depth of Saudi Arabia's oil and gas project intelligence for yourself. Book a Free Demo with the Blackridge Research team today and discover how GPT can sharpen your competitive positioning.