Italian engineering giant Saipem and Luxembourg-domiciled offshore engineers and construction firm Subsea7 have officially merged to create ‘a global leader in energy services’.
The new ‘Saipem7’ will have revenue of about €21 billion and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of €2 billion, and will make a sizeable footprint in the offshore energy industry with the combination of strengths, including vessels.
“The management of both Saipem and Subsea7 confirm the compelling strategic rationale in creating a global leader in energy services, particularly considering the growing size of clients’ projects,” said a joint statement. “The parties believe the Proposed Combination will enhance value for all shareholders and stakeholders, both in the current market and in the long term.”
The new merger will have projects in more than 60 countries with the full spectrum of offshore services both in oil and gas and in renewables.
“An expanded and diversified fleet of more than 60 construction vessels enhancing Saipem7’s ability to undertake a wide range of projects, from shallow water to ultra-deepwater operations, utilising a full portfolio of heavy lift, high-end J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical lay services, as well as market-leading wind turbine, foundations and cable lay installation capabilities,” the statement says.
The company will employ a global workforce of more than 40,000, including more than 9,000 engineers and project managers, with ‘the combined expertise to foster innovation in offshore technologies, ensuring cutting-edge solutions for complex projects’.
Kristian Siem will become chairman and Alessandro Puliti chief executive of Saipem7, pending shareholder and board approval.
