Saipem has completed the sale of its Saudi Arabian shallow-water drilling business to ADES Saudi Limited Company, advancing its strategy to focus its offshore drilling portfolio on deepwater and harsh-environment operations.
The transaction, first announced in June, covers Saipem's entire shareholding in Saudi Arabian Saipem Limited and was completed after receiving regulatory approvals and satisfying customary closing conditions.
Saudi Arabian Saipem Limited owns three jack-up rigs, Perro Negro 7, Perro Negro 8 and Perro Negro 10, and operates two leased units, Perro Negro 11 and Perro Negro 13.
Under the binding agreement announced on June 24, the business was valued at $285 million on a debt-free and cash-free basis, with the consideration to be paid in cash at closing and subject to customary adjustments.
Saipem and ADES have also entered into a bareboat charter agreement for the Perro Negro 10, allowing Saipem to continue using the jack-up rig for its existing operations in Mexico and fulfil its contractual commitments.
Saipem said when the sale was announced that the proceeds would be used in line with the objectives of its industrial plan.
ADES Saudi Limited Company is an indirect subsidiary of ADES Holding Company, an operator of offshore and onshore drilling services.
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