Italian oilfield services company Saipem has secured a contract worth approximately $1.04 billion to develop the Uthmaniyah Gas Compression Plant in Saudi Arabia.
The agreement covers engineering, procurement, and construction activities for the project. The work is expected to continue for around 42 months.
Saipem will execute the project through Saipem Nasser Saeed Al-Hajri Contracting Company (SNSH). The venture combines Saipem with Nasser Saeed Al-Hajri and Partners Company for Contracting.
According to the company, the Uthmaniyah gas compression plant will support the non-associated gas field in Uthmaniyah. The facility will improve production efficiency and support future operations.
In addition, the Uthmaniyah gas compression plant will help extend the productive life of the field. It will also support Saudi Arabia’s growing energy requirements.
Saudi Arabia continues investing heavily in natural gas infrastructure. Therefore, the project supports the Kingdom’s efforts to strengthen energy security and diversify supply sources.
SNSH combines Saipem’s engineering expertise with NSH’s construction experience. As a result, the joint venture can manage large-scale energy projects across the country.
The latest contract follows several important awards for Saipem during 2026. Earlier this year, the company received a limited notice to proceed worth around $150 million from ExxonMobil Guyana.
That agreement allows Saipem to begin engineering and procurement work for the Longtail project in the Stabroek Block offshore Guyana.
Furthermore, the company secured two offshore contracts in Saudi Arabia worth approximately $400 million under an existing agreement with Aramco. These projects involve engineering, procurement, construction, and installation work for water injection facilities at the Safaniya oilfield.
One contract includes a new water injection tie-in platform and two water injection wellheads. It also covers pipeline construction and electrical infrastructure.
Industry experts view the latest award as another sign of strong investment in Saudi Arabia’s energy sector. Moreover, natural gas development remains a key priority for the Kingdom.
The project is expected to strengthen gas production capacity and support future energy demand. Consequently, it will contribute to the country’s long-term energy strategy.
