Saipem and Subsea7 have entered into a binding agreement on their planned merger, following the memorandum of understanding (MoU) announced on Feb. 23.
The newly combined company will be renamed Saipem7. It will have revenues totalling about €21 billion ($24.68 billion), with a contracts backlog of €43 billion ($50.54 billion).
Existing clients of the current two companies should benefit from the complementary geographical footprints, competencies, capabilities, vessel fleets and technologies. Upon completion of the merger, Saipem and Subsea7 shareholders will own 50% each of Saipem7’s share capital; the two companies’ largest shareholders, Eni, CDP Equity and Siem Industries, have all stated their backing for the combination.
Annual synergies as a result of the merger should be about €300 million ($352.6 million) from the third year of completion, due in part to fleet optimization and procurement measures (longer charter periods for leased vessels and improved terms with suppliers).
Since the MoU this past February, the boards of the two existing companies have completed their preliminary anti-trust analysis for the merger, supported by specialist advisers. They are working to submit relevant documentation for the combination to applicable antitrust authorities.
Saipem7 will be incorporated in Italy, with its headquarters in Milan, and shares listed on the Milan and Oslo stock exchanges. It will be structured as four businesses: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures and Drilling Offshore.
Kristian Siem will be named chairman of the board of directors with Alessandro Puliti appointed CEO. In addition, Puliti and John Evans will respectively serve as chairman and CEO of the company that will manage Saipem7’s Offshore Engineering & Construction business, to be branded as “Subsea7, a Saipem7 Company.” It will be incorporated in the UK and headquartered in London.
This will combine all of Subsea7’s existing businesses and Saipem’s Asset Based Services business (including Offshore Wind).
Saipem7 will provide a full range of offshore and onshore oil and gas services, from drilling, engineering and construction to life-of-field support and decommissioning.
It will operate a diverse fleet of more than 60 construction vessels undertaking projects in shallow water to ultradeepwater, using heavy lift, J-lay, S-lay and reel-lay rigid pipeline installation capabilities, flexible pipe and umbilical lay, and offshore wind turbine, foundations and cable lay installations.
The 44,000-strong global workforce will include more than 9,000 engineers and project managers.
Completion of the proposed combination, following regulatory approvals, is targeted for the second half of 2026.
Saipem's latest offshore projects:
Subsea7's latest offshore projects:
About the Author
Jeremy Beckman
Editor, Europe
Jeremy Beckman has been Editor Europe, Offshore since 1992. Prior to joining Offshore he was a freelance journalist for eight years, working for a variety of electronics, computing and scientific journals in the UK. He regularly writes news columns on trends and events both in the NW Europe offshore region and globally. He also writes features on developments and technology in exploration and production.