Saipem has been awarded a $3.1 billion contract by QatarEnergy LNG for work on the North Field gas project. This substantial award is part of a larger $4 billion agreement with partner Offshore Oil Engineering Co (COOEC) and is expected to contribute to Saipem’s already record-high backlog. The contract announcement on Sunday, December 21, 2025, led to a rise in Saipem’s share price on Monday. Saipem’s portion of the contract, valued at approximately $3.1 billion, is a five-year engineering, procurement, construction, and installation (EPCI) agreement. The work involves two new offshore gas compression facilities to help sustain and increase output at the North Field, the world’s largest non-associated natural gas field. This is the third major contract Saipem has secured for the North Field Production Sustainability (NFPS) project, bringing its total awards in the program to over $8.5 billion. The new award adds to Saipem’s significant backlog, which reached an all-time high of €34 billion at the end of the 2024 fiscal year. The contract is expected to further improve margins as new contracts are generally inflation-indexed. Following the news, Saipem’s shares saw a positive movement, and the stock is currently rated as a “Buy” by analysts with an average 12-month price target of over €3.
Note by Alessandro Bazzoni