Saipem, AHQ Sign Deal to Set Up Saudi Construction JV

Saipem, a leading company in engineering, drilling and construction of major projects in the energy and infrastructure sector, has signed an agreement with the Saudi construction company Abdel Hadi Abdullah Al Qahtani & Sons Company (AHQ).

The Italy-based company said this agreement paves way for the creation of a joint venture company in Saudi Arabia, combining Saipem’s EPC competences and skills with AHQ’s knowledge and experience in logistic, construction and supply chain.

The new company aims to maximise local value creation and become a first-tier player in the execution of onshore construction works as well as of onshore pipeline EPC projects, it stated.

On the new venture, Chief Operating Officer (Onshore E&C) Maurizio Coratella said: "Saudi Arabia has been a core market to Saipem from the outset and our ambition is to maintain our EPC leading role in the country. We are committed to establishing this joint venture with AHQ in bid to harness synergies to support our major client Saudi Aramco."

"A central feature of the partnership is the possibility to operate in compliance with the requirements of the IKTVA (In-Kingdom Total Value Add) program launched by Saudi Aramco as an integral part of its contracts to achieve 70% localization of spending by 2021," he added.