Italy’s engineering, drilling, and construction services company Saipem has divested its shallow-water drilling business in Saudi Arabia to ADES Saudi Limited Company, an indirect subsidiary of Saudi Arabia-headquartered ADES Holding Company, which has now added about SAR 3.7 billion ($987 million) in backlog and five premium jack-up rigs that increase its global fleet to 128 units, while expanding its offshore footprint into Mexico and strengthening its position in the Saudi market.
Saipem has completed the sale of its entire shareholding in Saudi Arabian Saipem to ADES after obtaining all applicable regulatory approvals and the occurrence of all customary conditions precedent. With the completion of the transaction, the Italian firm further advances the implementation of its strategy aimed at focusing its portfolio on deepwater and harsh-environment offshore drilling segments, characterized by higher complexity and added value.
Dr. Mohamed Farouk, CEO of ADES Holding, commented: “The completion of this acquisition marks another disciplined step in our growth journey. We are adding five operational premium jack-ups, with an average age of 10.4 years – highly complementary to our fleet, and backed by our established presence and operational track record in Saudi Arabia.”
“Offshore market fundamentals remain supportive, with contracted jack-up utilization holding around 90 percent, day rates remaining firm, and tendering activity continuing to build across our key markets. This is further reflected in the resumption notices received for all of our temporarily suspended offshore rigs in the GCC, reinforcing our confidence in the underlying strength of demand across the region.”
Saudi Arabian Saipem operates in the shallow-water offshore drilling segment and owns a fleet of three jack-up rigs, including the Perro Negro 7, Perro Negro 8, and Perro Negro 10 units, along with two leased jack-up rigs, Perro Negro 11 and Perro Negro 13. The two companies also entered into a bareboat charter agreement that will allow the Italian firm to continue using the Perro Negro 10 jack-up rig in its ongoing operations in Mexico.
This acquisition adds five operational premium jack-ups to ADES’ offshore fleet, reinforces its position in the Kingdom of Saudi Arabia and establishes a new operating presence in Mexico, with completion coming amid supportive offshore market fundamentals and healthy customer demand.
The rig owner now operates a fleet of 128 rigs, comprising 88 offshore jack-ups, including 51 premium ones, and 40 onshore units. This acquisition marks ADES’ entry into Mexico, extending its international footprint to 21 countries, and adds approximately SAR 3.7 billion in backlog as of the completion date.
Dr. Farouk added: “Our enlarged premium fleet and robust, long-term backlog position us to capitalize on sustained customer demand and continue delivering shareholder value. Importantly, energy security today depends not only on hydrocarbon reserves, but on the availability of the rigs required to safely and efficiently develop them.
“By deepening our footprint in the Kingdom while extending our international reach, we are contributing meaningfully to global energy security – while continuing to strengthen local capabilities, build out the domestic value chain, and advance the Kingdom’s broader ambitions under Vision 2030.”
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