It is reported that Italian energy contractor Saipem has won USD 400 million contract to charter an offshore drilling rig in Egypt.

As per report, Saipem will run the rig, named Scarabeo 6, until the Q4 of 2014. It will continue to operate in Egyptian waters during that time.

The contractor said that the rig can operate in up to 780 meters of water. It will upgrade the rig to operate in up to 1,100 meters of water. The upgrades will take place over a 6 month period in 2011.

Burullus Gas Company a JV of the UK's BG Group, Egyptian Natural Gas Company and Malaysia's Petronas, awarded the contract to Saipem.

In 2008, Saipem won a contract from Burullus to develop Egypt's Sequoia field, located offshore from the Nile River Delta.

(Sourced from MEED)