ADES to acquire Saipem unit for SAR 1.07B

ADES signs SAR 1.07 billion deal to acquire five offshore drilling rigs, expanding its fleet to 88 units

ADES Holding Co. said its wholly owned indirect subsidiary, ADES Saudi Ltd., signed a binding agreement on June 24 to acquire Saudi Arabian Saipem Ltd. (SAS), a subsidiary of Saipem International B.V., for SAR 1.07 billion ($285 million), subject to customary adjustment mechanisms.

The transaction comprises the acquisition of five operating jack-up drilling rigs, including three owned rigs—Perro Negro 7, Perro Negro 8, and Perro Negro 10—and two leased rigs, Perro Negro 11 and Perro Negro 13.

Four of the rigs are currently operating in Saudi Arabia, while the fifth is operating in Mexico under an existing lease contract.

Under the agreement, ADES will deposit an upfront payment equivalent to 10% of the transaction value into an escrow account within five business days of signing the sale and purchase agreement, subject to the required regulatory approvals.

The company said it intends to finance the acquisition through available cash and existing financing facilities.

ADES said the transaction strengthens its position as a national drilling champion in its core Saudi market while further enhancing its global jack-up drilling platform. The acquisition is in line with the group's strategy of acquiring high-quality assets backed by existing contracts, allowing for an immediate contribution to revenue, cash flow, and backlog visibility.

The acquired rigs are highly complementary to ADES’ existing fleet, enabling efficient integration with limited operational risk while leveraging the group’s established presence in Saudi Arabia and strong operating track record.

The deal is expected to add approximately SAR 3.8 billion ($1 billion) to ADES' backlog. It will also increase the company's fleet to 88 offshore units, including 51 premium units, further reinforcing its position in the jack-up drilling and premium offshore rig segments.

ADES added that easing regional tensions has improved the outlook for the sector, as suspended rigs across GCC countries are expected to gradually return to operation. The company noted that all previously suspended rigs in Qatar have resumed operations, while one suspended rig in Saudi Arabia has already received a notice to restart operations.

According to ADES, these developments are expected to improve market visibility and support the sector's positive long-term fundamentals.

SAS owns three premium jack-up drilling rigs—Perro Negro 7, Perro Negro 8, and Perro Negro 10. Perro Negro 10 is currently operating in Mexico under an existing lease contract. The company also operates two leased rigs, Perro Negro 11 and Perro Negro 13.

Historical revenue figures are not indicative of future financial performance.

The transaction is expected to be completed in the third quarter of 2026, subject to customary closing conditions and the receipt of the required regulatory approvals.