Saipem exits Saudi Arabian shallow-water drilling playground with sale of jack-up rig fleet to ADES

June 24, 2026, by Melisa Cavcic

Italy’s engineering, drilling, and construction services giant Saipem is divesting its shareholding in Saudi Arabian Saipem (SAS) to close its shallow water drilling chapter in Saudi Arabia, as it continues its shift to deepwater plays. This move enables ADES Holding Company, part of Saudi Arabia-headquartered ADES Group, to bring the Italian giant’s affected jack-up rigs into its fold, enlarging its rig fleet.

Gulf Driller VII aka Perro Negro 11 - Saipem — Gulf Driller VII or Perro Negro 11; Source: CIMC Raffles

Saipem has disclosed a binding sale and purchase agreement (SPA) with ADES Saudi Limited Company, an indirect subsidiary of ADES, for the sale of the entire interest 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 Saudi Arabian Saipem’s fleet that comprises three owned jack-up rigs, including Perro Negro 7, Perro Negro 8, Perro Negro 10, and two leased jack-up rigs, encompassing Perro Negro 11 and Perro Negro 13. The completion of the transaction is expected by the third quarter of 2026, subject to the satisfaction of customary conditions precedent, including obtaining applicable regulatory approvals.

Dr. Mohamed Farouk, CEO of ADES Holding, commented: “The addition of five, high-specification premium jack-ups, with an average fleet age of 10.4 years, further enhances 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 further 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 enlarged fleet also provides additional room for operational efficiencies across logistics, maintenance and procurement, further enhancing the value creation potential of the transaction.”

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During 2025, SAS recorded revenues of Saudi Arabian riyals 636 million, equivalent to $170 million. The divestment value of Saipem’s shallow-water drilling activities in Saudi Arabia amounts to $285 million on a debt-free/cash-free basis, which will be paid in cash at closing, subject to customary adjustment mechanisms.

The proceeds from the transaction 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 with the Perro Negro 10 rig and to ensure full compliance with its existing commitments.

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, strengthening its positioning in higher-complexity, higher-value-added segments.

Currently, ADES operates an offshore jack-up fleet that contains 81 offshore jack-up rigs, of which 46 are premium units, an offshore jack-up barge, and one mobile offshore production unit (MOPU), in addition to 40 onshore rigs. Once this acquisition is complete, the company will operate a fleet of 88 offshore units, of which 51 are premium units.

While explaining that it is positioned to capitalize on sustained customer demand, underpinned not only by its premium fleet but also long-term backlog, the firm emphasized: “Further supporting this outlook is the easing of regional tensions, which is expected to facilitate the return of previously suspended rigs in the GCC, a trend already evidenced by the recent resumption of all previously suspended rigs in Qatar and the anticipated return of rigs in Saudi Arabia, with one rig having already received a resumption notice, which is expected to improve market visibility and reinforce positive market fundamentals.”

Saipem is advised by Moelis & Company UK, acting as financial advisor, and by Clifford Chance, together with AS&H Clifford Chance, as legal counsel, in connection with this divestment. This announcement comes shortly after the Italian company secured a deal with Azule Energy for an ultra-deepwater development in Angola.