Italian engineering firm Saipem and Norwegian offshore energy firm Subsea7 have agreed in principle to merge, creating a mammoth in offshore energy services.
In a joint statement, the two companies said they would be renamed ‘Saipem7’ and enjoy a combined backlog of €43 billion, revenue of around €20 billion and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of more than €2 billion.
Saipem7 will employ more than 45,000 workers, including 9,000 engineers and project managers, it says, and the shares will be split 50-50 between both firms.
“The management of both Saipem and Subsea7 share the conviction that there is compelling logic in creating a global leader in energy services, particularly considering the growing size of clients’ projects,” the joint statement said. “Saipem and Subsea7 are highly complementary in terms of market offerings and geographies. The combination would enhance value for shareholders, and all stakeholders, both in the current market and in the long term.”
The statement said the expanded fleet comprises more than 60 construction vessels, allowing projects in shallow and ultra deepwater to be carried out, such as pipelay, wind turbine foundations and cable installation.
The company, which will be headquartered in Milan, will be split into four: Offshore Engineering & Construction; Onshore Engineering & Construction; Sustainable Infrastructures; and Offshore Drilling.
Subsea7 CEO John Evans will remain at the helm of the new structure, the statement said.
In a sign of things to come, the two companies almost exactly two years ago agreed to collaborate on offshore wind projects.
The new company is expected to be formally set up in the second half of 2026.
