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 liam.moloney@wsj.com
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