Saipem said the E&C contract was for the building and commissioning of the expansion of the South Caucasus Pipeline in Azerbaijan and Georgia - with this project targeting completion in the June quarter of 2018.

"The scope of work for this contract includes the construction of a 428km pipeline loop and associated above-ground installations, including block valves, a pigging facility and tie-ins in Azerbaijan and Georgia, as well as the construction of a 59km second pipeline loop and associated above-ground installations in Georgia," Saipem said.

"The expanded section of the South Caucasus Pipeline will start approximately 23km from the Sangachal Terminal, located southwest of Baku in Azerbaijan, and will end in Georgia, just south of Tbilisi."

On the drilling work, Saipem said it agreed to a one-year extension of an existing contract for three onshore rigs starting in the second half of 2014.

It also signed new contracts for three onshore rigs starting a year later for a five-year period, with the location not revealed.

"These contracts consolidate Saipem's presence in the Middle East as one of the key drilling contractors, with a total fleet in the region of 30 rigs," it said.

Saipem separately landed a one-year extension of the contract for its Perro Negro 7 jack-up rig, which is operating in the offshore Middle East.