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Italian oil and gas contractor Saipem has signed a binding agreement to sell its Saudi Arabia-based shallow-water drilling subsidiary to Al-Khobar-based ADES Holding Company for $285m.

Under the deal, ADES Saudi, an indirect subsidiary of Saudi Exchange-listed ADES Holding, will acquire Saudi Arabian Saipem, which operates a fleet of five jack-up rigs.

The fleet includes three owned rigs – Perro Negro 7, Perro Negro 8, and Perro Negro 10 – as well as two leased rigs, Perro Negro 11 and Perro Negro 13.

The transaction is structured on a debt-free, cash-free basis and will be settled entirely in cash upon closing. Completion is expected in the third quarter of 2026, subject to customary regulatory approvals and other closing conditions.

The purchase of Saudi Arabian Saipem by ADES Holding follows the company’s takeover of Dubai-based, Oslo-listed Shelf Drilling in November last year, in a transaction valued at $379m. Following the completion of the cash merger, Shelf Drilling was wholly delisted from the Oslo Stock Exchange.

The combined Shelf Drilling-ADES entity has been operating as a strong global player in shallow-water drilling with a fleet of 83 offshore jack-ups, including 46 premium jack-ups and 40 onshore rigs, across the world’s most prolific basins. The acquisition expanded ADES Holding’ global footprint from 13 to 19 countries, allowing entry and deeper operational integration into Southeast Asia, India, West Africa, the North Sea and the broader Mediterranean.

Saudi Arabian Saipem generated revenues of SR636m ($170m) during 2025, highlighting the scale of the business being transferred.

As part of the agreement, Saipem will retain operational access to the Perro Negro 10 rig through a bareboat charter arrangement after the sale closes. The arrangement will allow the company to continue fulfilling existing commitments in Mexico without disruption.

The divestment aligns with Saipem’s broader industrial strategy of reducing exposure to mature shallow-water drilling markets and concentrating resources on deepwater and harsh-environment offshore projects, where technical complexity and barriers to entry are generally higher.

These segments have attracted growing investment in recent years as operators pursue offshore developments in regions such as the North Sea, Brazil, West Africa and the US Gulf of Mexico.

For ADES, the acquisition further expands its presence in the Middle East offshore drilling market, particularly in Saudi Arabia, one of the world’s largest offshore jack-up rig markets, driven by activity from Saudi Aramco.

Saipem said proceeds from the transaction will be used in accordance with the objectives outlined in its industrial plan. The Milan-listed company was advised on the transaction by Moelis & Company as financial adviser and Clifford Chance, together with AS&H Clifford Chance, as legal counsel.