Views: 4 Author: Site Editor Publish Time: 2025-02-26 Origin: Site
Italian oilfield services giant Saipem and UK subsea engineering leader Subsea7 have announced the completion of their merger, naming the new company Saipem7. The merger, valued at over $4.6 billion, is expected to result in annual revenues of 20 billion euros ($21 billion), EBITDA of over 2 billion euros, and a total order backlog of 43 billion euros ($45 billion). 43 billion euros (about $45 billion).
The merger aims to integrate the complementary strengths of the two companies in offshore oil and gas engineering, subsea pipeline construction, deepwater operations, etc. The combination of Saipem's onshore engineering capabilities and Subsea7's deepwater technology will enhance the new company's competitiveness in the global energy transition, particularly in the offshore wind and hydrogen infrastructure sectors.
In recent years, the oilfield services industry has been challenged by slowing growth in onshore business. Consulting firm Rystad Energy forecasts that the global oilfield services industry will shrink by 0.6% in 2025, but offshore business is expected to grow by 1.8%. The merger is seen as a key move to counter the wave of consolidation in the industry. The two companies, which had unsuccessfully attempted a merger in 2019, have now reached an agreement against the backdrop of both a recovering energy market and a low-carbon transition.
The CEO of Eni Group (Eni), Saipem's majority shareholder, said, “Saipem7 will be a global leader in the technology and industrial sectors, and its operational strength and financial soundness will create long-term value for shareholders and customers.” John Evans, former CEO of Subsea7 (who led the company's downsizing and fleet optimization in 2020), did not speak directly, but the merger press release emphasized that the two companies will optimize their cost structures through synergies.
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Saipem7 plans to expand into the renewable energy sector, including subsea cable installation and hydrogen pipeline technology. Saipem has already won a number of offshore EPC contracts in Saudi Arabia and Qatar (with a total value of more than US$5 billion) and has been certified for hydrogen pipeline materials, demonstrating its technological reserves, while Subsea7's deepwater fleet and remotely operated technology will also provide differentiation for the new company.
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