Cyprus-based joint venture creates major Eastmed energy player

Saipem and Hyperion Systems Engineering have joined forces to create Saipem-Hyperion Eastmed Engineering Ltd, a jointly controlled company based in Nicosia.

The joint venture was registered in March. The new company intends to move in people gradually, building up and adding infrastructure. Gradually the new joint venture will take over servicing clients from both companies in the region.

Saipem is an Italian global solution provider in the energy and infrastructure sectors, and one of the largest in the world. Until 2016, it was a subsidiary of the Italian oil major Eni.

Hyperion Systems Engineering are providers of consulting and engineering advisory services, specialised technology and implementation of advanced process systems solutions in the hydrocarbons, chemicals and power generation industries.

Why bring the two companies together?

“Saipem is organised in five divisions. The division XSIGHT is focused on the early engagement with clients, focusing on their needs and leveraging on innovations to anticipate market changes. This was a good fit with Hyperion Systems Engineering, as we are both really focused on providing disruptive technologies,” explains Luca Brunetto, Head of Business Development and Commercial Strategies of Saipem’s XSIGHT division, in an interview with the Cyprus Mail.

“We believe that, in this period, we have the right combination of competencies required in order to support the challenges of energy transition, which is our core commitment. We also feel we are taking a new approach with a focus on the East Mediterranean,” he adds.

The new company will work a balance between the global and local markets, Brunetto says.

“The market is ruled by the global economy, by global demand. And so, if we look to the East Med, this is the area where there will be a combination of global and local business. The global supply/demand will still impact the price scenario for natural resources. I believe that also the specialties of the local market matter too. There should be a kind of balance on what can be exported in terms of natural resources, and what should be used locally, through dedicated value chain, in order to develop local economies. Then it is a question of developing new and sustainable ways of providing energy for all.”

Brunetto says that the pandemic has created new market opportunities.

“The pandemic has unquestionably delayed some projects. So, to some extent, there has been a reduction of traditional business. But the pandemic has also provided new challenges and new opportunities because companies are accelerating the way they do business, and they are evaluating additional ways to make business sustainable. We are all coming up with new solutions which were not contemplated in the past. There is a market for new, sustainable services. So there is a transition, just not a reduction in business. We are confident to target volumes that we seek to achieve,” Brunetto comments.

In this respect, Cyprus is in a very strategic position, he continues.

“Let’s say it’s a strategic country, it brings together different regions, East Med, Europe and North Africa. Saipem was already present in Nicosia with our Cyprus branch. This allowed us to use the already available local resources to set up the company. We successfully tested the local network. In that respect, it was a natural choice. And the setup process was very smooth. We felt immediately that it worked for us, and for our partner too.”

Brunetto was also impressed by Cyprus as an environment for business.

“I believe Cyprus business has the willingness to develop, people are very active, they love the area, they want to do things better. There is a strong commitment. I believe together we will find the best way to move forward.”