Saipem has signed a binding agreement to sell its shallow-water drilling subsidiary in Saudi Arabia to ADES Saudi Limited Company for USD 285 million in cash. The deal covers Saipem’s entire stake in Saudi Arabian Saipem Limited, a unit operating a fleet of five jack-up rigs in the region. Closing is expected by the third quarter of 2026, pending regulatory approvals.
Saipem signs binding deal to sell SAS to ADES for USD 285 million
The agreement was signed between Saipem and ADES Saudi Limited Company, an indirect subsidiary of ADES Holding Company, and covers Saipem’s full shareholding in Saudi Arabian Saipem Limited, held through its subsidiary Saipem International B.V.
The purchase price is USD 285 million on a debt-free, cash-free basis. The full amount will be paid in cash at closing, subject to customary adjustment mechanisms. Completion is expected by Q3 2026, contingent on standard conditions precedent—including all applicable regulatory approvals.
Divestment driven by Saipem’s strategic shift toward deepwater and harsh-environment drilling
The sale is not an isolated move. It reflects a deliberate repositioning of Saipem’s portfolio away from shallow-water operations and toward deepwater and harsh-environment offshore drilling—segments the company describes as higher-complexity and higher-value-added.
Saipem has framed the SAS divestment as a further step in executing its industrial plan, with proceeds from the USD 285 million transaction to be deployed in line with that plan’s objectives. Specific allocation details have not been disclosed. The strategic logic is clear enough: exiting shallow-water Saudi operations frees up both capital and management attention for segments where the company sees stronger long-term positioning. A directional signal, not a one-off asset sale.
SAS fleet and financials: Five jack-up rigs and USD 170 million in 2025 revenues
Saudi Arabian Saipem Limited operates a fleet of five jack-up rigs. Two are leased — Perro Negro 11 and Perro Negro 13 — while three are owned outright: Perro Negro 7, Perro Negro 8, and Perro Negro 10.
Financially, SAS generated revenues of SAR 636 million in full-year 2025, equivalent to approximately USD 170 million. That figure puts the USD 285 million price tag in context—roughly 1.7 times annual revenue.
One detail stands out in the post-closing arrangements. After the transaction completes, Saipem and ADES will enter into a bareboat charter agreement covering the Perro Negro 10 rig, allowing Saipem to retain operational use of that asset to continue its ongoing work in Mexico. The structure ensures Saipem can honor existing contractual commitments without interruption, even after ownership transfers — a transition arrangement of the kind that drilling sector asset sales routinely require.
ADES expands its international offshore drilling portfolio with the acquisition
For ADES, this is an expansion move. ADES Holding Company operates as an international drilling contractor, active in both offshore and onshore services across multiple markets worldwide. Adding SAS brings five jack-up rigs and an established operational base in Saudi Arabia — one of the most active drilling markets globally — making the acquisition strategically significant for a company looking to grow its offshore footprint.
The deal also comes with an existing revenue base. SAS’s USD 170 million in 2025 revenues gives ADES an immediate operational platform rather than a greenfield entry into the market. That distinction matters.
On the advisory side, Saipem engaged Moelis & Company UK LLP as financial advisor and Clifford Chance — together with AS&H Clifford Chance — as legal counsel. ADES’s advisors were not disclosed in the available source material.
An immediate offshore presence in Saudi Arabia
The core facts are straightforward. Saipem is selling its entire stake in Saudi Arabian Saipem Limited to ADES Saudi Limited Company for USD 285 million in cash, with the asset including five jack-up rigs and a business that recorded approximately USD 170 million in revenues in 2025.
Closing is targeted for Q3 2026, subject to regulatory approvals. A bareboat charter for the Perro Negro 10 rig will preserve Saipem’s operational continuity in Mexico once the deal closes.
The divestment accelerates Saipem’s pivot toward deepwater and harsh-environment drilling. For ADES, it delivers an immediate offshore presence in Saudi Arabia — an active fleet and established operations already running, not a position that needs to be built from scratch.
Kelly is an experienced writer with 15 years of experience exploring the big stories that shape our world, from tech breakthroughs and space exploration to climate, energy, and the fascinating quirks of science. She has a talent for turning complex ideas into sharp, memorable insights that stay with readers long after they’ve finished reading.
