ADES's Offshore Growth
ADES Acquires Saipem's $285 Million Saudi Jack-Up Fleet, Expanding into Mexico and Boosting Backlog
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Key Points
1
The sale is structured on a debt-free, cash-free basis and will be settled entirely in cash at closing, with a purchase price of USD 285 million.
2
Perro Negro 10 currently operates in Mexico under an existing charter and will continue to operate there under a bareboat charter after completion to satisfy ongoing Mexico commitments.
3
Saipem’s Saudi asset SAS reported 2025 revenue of 636 million Saudi riyals (about $170 million), illustrating the scale of the business being divested.
4
The five acquired jackups have an average fleet age of 10.4 years, indicating a relatively modern high-specification asset base for ADES.
5
A 1-10% deposit is required to be placed into an escrow account within five business days of signing the SPA, signaling upfront financial assurances for the deal.
ADES Holding Company has agreed to buy five jack-up drilling rigs from Italy's Saipem for $285 million, the companies announced on June 24, according to Reuters. The deal gives ADES full ownership of Saudi Arabian Saipem Limited and adds roughly $1 billion to its contracted backlog.
Once the deal closes — expected in the third quarter of 2026 — ADES will operate 88 offshore drilling units, including 51 premium rigs, according to Splash247. That would make it one of the largest offshore drilling contractors in the world by fleet size.
What ADES Is Actually Buying for $285 Million
The deal covers five premium jack-up rigs: three owned outright — Perro Negro 7, 8, and 10 — and two leased rigs, Perro Negro 11 and 13, according to Mubasher. All five currently operate in Saudi Arabia. The average age of the fleet is 10.4 years, meaning these are relatively modern, high-spec assets.
ADES will pay entirely in cash at closing on a debt-free, cash-free basis. Within five business days of signing, ADES must place a deposit of 1% to 10% of the purchase price — between $2.85 million and $28.5 million — into an escrow account, according to Mubasher. The company will fund the deal from existing cash and financing commitments.
Perro Negro 10 Opens ADES's First Door Into Mexico
One rig — Perro Negro 10 — is the exception. It currently operates in Mexico under an existing charter. After the deal closes, Saipem will keep using it through a bareboat charter, meaning Saipem leases the rig from ADES to honor its existing Mexico commitments, according to ZAWYA.
ADES CEO Dr. Mohamed Farouk called the arrangement a foothold for future growth, saying the deal marks the company's "official entry into the Mexican market." For a firm that has historically focused on the Middle East and Africa, that is a meaningful geographic shift.
Saipem Exits Shallow Water to Chase Deepwater Deals
For Saipem, the sale is a deliberate exit from shallow-water, commoditized drilling. The Italian contractor is refocusing its portfolio on deepwater and harsh-environment projects, which carry higher margins, according to Reuters. The Saudi unit being sold posted 2025 revenue of SAR 636 million — about $170 million — illustrating the scale Saipem is walking away from.
The timing is sharp. On the same day ADES signed the SPA, Brazil's antitrust regulator approved a merger between Saipem and Subsea 7's installation businesses, according to Investing.com. Saipem is clearly moving fast to reshape its portfolio toward higher-value offshore segments.
ADES Bets Big on Saudi Drilling After a Turbulent 2026
This deal follows a difficult stretch for ADES. In March 2026, the company temporarily suspended several rigs in the Gulf region due to conflict involving Iran, though it kept its full-year EBITDA guidance of SAR 4.5–4.87 billion intact. The acquisition signals confidence that long-term Saudi drilling demand remains strong, according to Offshore Energy.
ADES had already bought Shelf Drilling in November 2025 for $379 million, pushing its fleet to 83 units across 19 countries. This new deal adds five more modern rigs and SAR 3.8 billion in backlog. That backlog represents roughly three to four years of revenue visibility based on the divested unit's 2025 figures, according to ZAWYA.
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