Italian energy services company Saipem has agreed to sell its shallow-water drilling business in Saudi Arabia to ADES for $285 million. The deal marks an important step in Saipem’s plan to reshape its offshore drilling portfolio and focus on higher-value offshore operations. Once completed, the transaction will transfer the Saudi shallow-water drilling business to ADES, while Saipem continues to strengthen its position in deepwater and harsh-environment drilling.
Saipem Signs Binding Sale Agreement
Saipem announced that it has signed a binding sale and purchase agreement with ADES for the sale of its Saudi shallow-water drilling business. The transaction is valued at $285 million on a debt-free and cash-free basis. ADES will pay the purchase price in cash when the deal closes, subject to the customary adjustments and closing conditions.
The company said the sale aligns with its strategy to simplify its offshore drilling portfolio and concentrate on higher-value business segments.
Business Includes Five Jack-Up Rigs
The transaction covers Saipem Arabia Saudi (SAS), the company’s shallow-water drilling business in Saudi Arabia. The business operates five jack-up drilling rigs used for offshore activities in the Kingdom.
Three of the rigs are owned by SAS, while the remaining two operate under lease agreements. As part of the transaction, Saipem and ADES have also agreed to a bareboat charter arrangement that will allow Saipem to continue using the Perro Negro 10 drilling rig for its operations in Mexico after the sale is completed.
Saudi Unit Reported Strong Revenue in 2025
Saipem said the Saudi shallow-water drilling business generated revenue of 636 million Saudi riyals, or about $170 million, during 2025. The company included this financial information as part of the transaction announcement. The agreement is subject to the usual regulatory approvals and other customary closing conditions before it can be finalized. Saipem expects the transaction to close during the third quarter of 2026 if all required approvals are received.
The company said the sale supports its long-term strategy of focusing its offshore drilling business on deepwater and harsh-environment activities. At the same time, ADES will acquire Saipem’s Saudi shallow-water drilling business under the agreed terms of the transaction. The announcement represents another portfolio adjustment for Saipem as it continues to align its business with its strategic priorities while completing the transfer of its Saudi shallow-water drilling operations to ADES.
