Italian offshore engineering and construction company Saipem and multinational services provider Subsea 7 have signed a Memorandum of Understanding (MoU) for a potential $4.63 billion merger. The EU cross-border deal would integrate Subsea 7 into Saipem, creating a new entity named Saipem7.
Saipem7 will be structured into four business segments. The offshore engineering and construction unit, branded Subsea7 – a Saipem7 Company, will operate as an autonomous business, incorporating all of Subsea 7’s operations alongside Saipem’s asset-based services.
The onshore engineering and construction segment will focus on reducing overall risk and maximizing profitability for the combined group, while the sustainability infrastructure segment aims to expand overseas operations. The offshore drilling segment will be formed to maximize cash flow for Saipem7.
The final merger terms are expected to be presented to the companies’ respective boards in mid-2025, with completion targeted for the second half of 2026.
Saipem is a major contractor in Africa, currently developing Angola’s Quiluma, Maboqueiro and Ndungu fields, executing EPC work on Ivory Coast’s Baleine field, and managing and providing subsea intervention services for Libya’s GreenStream pipeline to Italy. Meanwhile, Subsea 7 is engaged in several Africa-focused projects, including a contract with Azule Energy to install subsea structures for the Agogo Integrated West Hub Development in Block 15/06 offshore Angola.
