Saudi oil and gas driller ADES has signed a deal with Italian firm Saipem to acquire the latter’s Saudi subsidiary for a total purchase consideration of $285 million, according to a report by Splash247. The transaction will be funded through existing liquidity sources and available financing commitments, and is expected to close during the third quarter of 2026, subject to customary conditions and regulatory approvals.
Deal Structure and Assets
ADES’s indirectly owned subsidiary, ADES Saudi Limited, acquired Saudi Arabian Saipem Limited, which owns five jackup drilling rigs. The acquired fleet consists of three premium, high-specification owned jackups — Perro Negro 7, Perro Negro 8, and Perro Negro 10 — as well as two premium, high-specification leased jackups — Perro Negro 11 and Perro Negro 13. According to Splash247, Perro Negro 10 currently operates in Mexico and will continue to do so under a charter structure while retaining a valid contract in Saudi Arabia, marking ADES' entry into the Mexican market. All remaining rigs operate in Saudi Arabia.
| Rig Name | Type | Ownership | Current Operating Area |
|---|---|---|---|
| Perro Negro 7 | Premium jackup | Owned | Saudi Arabia |
| Perro Negro 8 | Premium jackup | Owned | Saudi Arabia |
| Perro Negro 10 | Premium jackup | Owned | Mexico / Saudi Arabia |
| Perro Negro 11 | Premium jackup | Leased | Saudi Arabia |
| Perro Negro 13 | Premium jackup | Leased | Saudi Arabia |
Strategic Rationale
Post-transaction, ADES will operate a fleet of 88 offshore units, of which 51 are premium units. The company stated that the transaction is fully aligned with its growth approach, focusing on acquiring high-quality, contracted assets that support immediate revenue contribution, cash flow generation, and long-term backlog visibility. Splash247 reported ADES as saying, “The acquired rigs are highly complementary to ADES’ existing jackup fleet, enabling efficient integration with limited ramp-up risk, supported by the group’s established presence in Saudi Arabia and operational track record.”
The acquisition adds approximately SAR 3.8 billion ($1 billion) to the company’s backlog. Mohamed Farouk, CEO of ADES, commented: “The addition of five, high-specification premium jackups, with an average fleet age of 10.4 years, further enhances our premium asset base and supports earnings visibility, strong cash flow generation and long-term value creation. In addition to further strengthening our presence in Saudi Arabia, this transaction marks ADES’ entry into Mexico, adding a new market to our international footprint and creating a platform for future growth opportunities in the region.”
Market Implications
For the oil and gas drilling services market, this consolidation reflects ongoing rationalization among rig operators in the Middle East. ADES’ expanded fleet and backlog strengthen its competitive position vis-à-vis other regional drillers. Commodity traders and analysts tracking upstream activity should note that the addition of high-specification jackups enhances the supply of modern rigs in Saudi Arabia and Mexico, potentially affecting regional drilling costs and project timelines. The deal also underscores sustained investment in Saudi Arabian oil and gas development, which supports demand for drilling services and, by extension, crude oil production capacity.
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