Saipem and Modern Drilling Co. (MDC) have signed a memorandum of understanding to investigate collaboration opportunities in offshore drilling.

The initial focus would be on Egypt, where MDC operates three jackup rigs, but it could extend to other countries.

This would be a non-exclusive strategic cooperation, with the goal to identify and develop new business initiatives in offshore drilling services, Saipem explained.

The partners would determine the most appropriate model for each opportunity via joint ventures, consortia or dedicated agreements for individual projects.

A joint coordination committee monitoring market developments would track the projects of mutual interest and define the next steps of the co-operation.

The agreement may extend to sharing of expertise and experience, support in project execution, asset management activities, and training services, Saipem added.

MDC was originally formed in 2005 as SinoTharwa Drilling Co. via a partnership between Tharwa Petroleum and Sinopec Star Petroleum.

It later became a fully Egyptian-owned entity, performing offshore and onshore drilling and workovers in Egypt, Algeria and Kuwait. The three offshore rigs active in the Egyptian sector are the Bahari 1, El Qaher 1 and El Qaher 2.