Saipem expects a modest impact from suspension of Saudi Aramco contracts

The Italian company Saipem said that the temporary suspension of oil exploration contracts with Saudi Aramco will have a modest impact, and that achieving its expected goals for the current year is still within reach.

According to Reuters, Oslo-based Esgen, a company specializing in monitoring drilling rig activities, expected work to be suspended on more than 20 shallow-water drilling rigs in the coming months.

“With regard to the first drilling rig, our budget for 2024 has already addressed the premise of returning it to the owner by mid-year,” Saipem CFO Paolo Calcagnini said in a conference call following the announcement of the financial results.

Calcanini added that the group planned to use most of the period of suspension of activity on the second platform to complete its maintenance work, in addition to moving the third platform to a different geographical area.