ADES, a Saudi oil and gas drilling contractor, has completed the acquisition of Saipem's shallow offshore drilling business in Saudi Arabia. This deal, which was agreed upon in late June, was executed for a total amount of $285 million. This move allows ADES to expand its offshore drilling activities in Saudi Arabia.
Deal Details
According to this agreement, ADES Saudi Limited, a subsidiary indirectly owned by ADES, acquired the ownership of Saipem Saudi Limited. Saipem Saudi Limited includes a fleet of three drilling robots, namely Perro Negro 7, Perro Negro 8, and Perro Negro 10. Additionally, two leased drilling robots named Perro Negro 11 and Perro Negro 13 are included in this deal.
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Strategic Implications
With the completion of this deal, Saipem and ADES have also signed a bareboat charter agreement that allows Saipem to use Perro Negro 10 in its ongoing operations in Mexico. The remaining drilling robots in Saudi Arabia will continue to operate.
Saipem has announced that by completing this deal, it will advance its strategy to focus on deep-water drilling sectors and harsh marine environments characterized by greater complexity and higher added value. This shift in approach will help Saipem compete better in global markets and direct its resources towards more valuable projects.
Overall, this deal represents a significant transformation in the Saudi offshore drilling market and could have widespread implications for the future strategies of both companies. Furthermore, these changes may lead to increased competition in this sector and improve market conditions for drilling in the region.
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