Italian engineering, drilling and construction services company Saipem is divesting its stake in Saipem Saudi Arabia (SAS) to close its shallow water exploration chapter in Saudi Arabia, as it continues its shift to deepwater operations. The move allows ADES Holding, part of the ADES Group headquartered in Saudi Arabia, to bring the affected rigs of the Italian giant into its fold, expanding its rig fleet.
Saipem has disclosed a binding sale and purchase agreement (SPA) with ADES Saudi Arabia Limited, an indirect subsidiary of ADES, to sell the entire stakes held through its subsidiary Saipem International in SAS, a company active in shallow water offshore drilling operations.
As a result, ADES will enrich its fleet with the Saudi Saipem fleet, which includes three owned drilling rigs, including Black dog 7, Black dog 8, Black dog 10and two rented lifting platforms, incl Black dog 11 and Black dog 13. The transaction is expected to be completed by the third quarter of 2026, subject to the satisfaction of customary conditions precedent, including obtaining applicable regulatory approvals.
Dr. Muhammad FaroukADES Holding CEO commented: “The addition of five premium, high-specification rigs, with an average fleet age of 10.4 years, strengthens our premium asset base and supports earnings visibility, strong cash flow generation and long-term value creation. The transaction reflects ADES’ ability to execute strategically and decisively against an improving regional backdrop, with easing tensions and the recent return of a number of previously suspended rigs in the GCC supporting greater visibility across the offshore drilling market.”
“In addition to strengthening our presence in Saudi Arabia, this transaction marks ADES’ entry into Mexico, adding a new market to our international footprint and creating a platform for future growth opportunities in the region. The expanded fleet also provides additional room for operational efficiencies across logistics, maintenance and procurement, enhancing the value creation potential of the deal.”
During the year 2025, SAS recorded revenues of 636 million Saudi riyals, equivalent to 170 million US dollars. The divestment of Saipem’s investment in shallow water drilling activities in Saudi Arabia is $285 million on a debt-free/cash-free basis, which will be paid in cash upon closing, subject to customary adjustment mechanisms.
The proceeds from the deal will be used in line with the objectives of the Italian player’s industrial plan. Upon completion of the divestment, the two companies will enter into a bareboat charter agreement, allowing Saipem to continue its ongoing operations in Mexico using the Perro Negro 10 platform and ensuring full compliance with its existing obligations.
This asset disposal represents a further step in the implementation of the European giant’s strategy aimed at focusing its portfolio on deepwater and harsh environment offshore drilling, and strengthening its position in more complex and higher value-added sectors.
ADES currently operates an offshore fleet of 81 offshore platforms, including 46 premium units, an offshore barge, and a Mobile Offshore Production Unit (MOPU), in addition to 40 land-based offshore platforms. Once this acquisition is completed, the company will operate a fleet of 88 marine units, of which 51 will be premium units.
While the company explained that it is positioned to benefit from continued customer demand, supported not only by its outstanding fleet but also by its long-term backlog, it emphasized: “Also supporting these expectations is a decline in regional tensions, which is expected to facilitate the return of previously parked rigs in the GCC, a trend already evident by the recent resumption of all previously parked rigs in Qatar and the expected return of rigs in Saudi Arabia, with one rig already receiving notice of resumption, which is expected to improve market visibility and reinforce positive market fundamentals.”
Moelis & Company UK advised Saipem, as financial advisor, and Clifford Chance, together with AS&H Clifford Chance, as legal advisor, in relation to this divestment. This announcement comes shortly after the Italian company Secure a deal With Azule Energy to develop ultra-deepwater in Angola.
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