Saipem has signed a binding agreement to sell its Saudi Arabian shallow-water drilling subsidiary to ADES Holding for $285 million, marking another step in the Italian energy company’s bid to focus on high-quality offshore drilling segments.
Under the agreement, ADES Saudi Limited Company, an indirect subsidiary of Saudi-listed ADES Holding, will buy Saudi Arabian Saipem Limited (SAS), which operates a fleet of five jack-up rigs. The fleet includes three owned rigs—Perro Negro 7, Perro Negro 8, and Perro Negro 10—and two leased rigs, Perro Negro 11 and Perro Negro 13.
The transaction is arranged with no credit, no cash and will be paid in full in cash at closing. Completion is expected in the third quarter of 2026, subject to regulatory approval and other closing conditions.
SAS has projected revenue of 636 million Saudi riyals ($170 million) by 2025, highlighting the scale of the business being transferred.
As part of the agreement, Saipem will retain operational access to the Perro Negro 10 rig through a bareboat charter program after the sale closes. This plan will allow the company to continue fulfilling existing obligations in Mexico without interruption.
The divestment is in line with Saipem’s industry-wide strategy to reduce exposure to mature drilling markets and to focus resources on deepwater and offshore projects, where technical complexity and barriers to entry are typically high. These segments have attracted increasing investment in recent years as operators pursue offshore development in regions such as the North Sea, Brazil, West Africa, and the US Gulf of Mexico.
For ADES, the purchase increases its presence in the Middle East offshore drilling market, especially in Saudi Arabia, one of the world’s largest offshore markets, driven by activity from the oil giant Saudi Aramco.
Saipem said the proceeds from the project will be used in accordance with the objectives outlined in its industrial plan. The company was advised on the transaction by Moelis & Company as financial advisor and Clifford Chance, and AS&H Clifford Chance, as legal advisor.
The sale continues a broader trend of offshore holding contractors realigning portfolios in assets and markets that offer strong long-term returns while monetizing non-core operations.
By Charles Kennedy of Oilprice.com
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