Prime Highlights
- Saipem will sell its Saudi Arabian shallow-water drilling subsidiary to ADES Holding for $285 million.
- The deal supports Saipem’s strategy to focus on higher-margin deepwater and harsh-environment offshore projects.
Key Facts
- The subsidiary operates five jack-up drilling rigs in Saudi Arabia.
- SAS generated about $170 million in revenue during 2025.
Background
Saipem has agreed to sell its Saudi Arabian shallow-water drilling subsidiary to ADES Holding for $285 million as the Italian energy services company continues to focus on higher-margin offshore drilling businesses.
As per the binding agreement, ADES Saudi Limited Company will take over Saudi Arabian Saipem Limited (SAS), which has a total of five jack-up rigs in its fleet. Of the five, three rigs are wholly owned while the other two are leased.
The acquisition is expected to be on a cash-free and debt-free basis, wherein the total purchase consideration is paid in cash. The completion of the transaction is planned for the third quarter of 2026.
SAS earned revenues worth 636 million Saudi riyals ($170 million) in 2025.
Under the deal, Saipem will have access to the Perro Negro 10 rig through a charter arrangement, enabling the firm to fulfill existing contractual obligations in Mexico after the transaction.
This transaction goes hand in hand with Saipem’s business strategy of minimizing its involvement in mature shallow water drilling operations and focusing instead on deep water and harsh environment offshore oil and gas exploration. Such projects are more complex technologically and lucrative economically, hence getting more investments from oil firms.
On its part, ADES will enhance its market strength in Middle East offshore drilling operations and establish itself in Saudi Arabia, the world’s biggest jack-up rig market.
Saipem said the proceeds from the sale will support goals outlined in its industrial plan. The transaction also reflects a wider industry trend of offshore drilling companies reshaping portfolios toward businesses with stronger long-term growth prospects.
