Finance
Saipem says fleet expansion is driving Subsea 7 merger
Published by Global Banking & Finance Review®
Posted on February 26, 2025
2 min readLast updated: January 25, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 26, 2025
2 min readLast updated: January 25, 2026
Saipem and Subsea 7 announce a merger to combine their fleets, enhancing service efficiency and reducing costs. Approval is expected by 2026.
MILAN (Reuters) - The rationale for a merger between Italy's Saipem and Norway's Subsea 7 is to combine the fleets of the two energy services companies to service customers quicker and cut costs, the CEO of the Italian group said on Wednesday.
The two companies announced on Sunday their intention to merge to create a global leader in offshore energy services.
The combined group, which is not expected to get authorities' approvals until the second half of 2026, will have a fleet of around 60 vessels to serve the upstream oil industry and perform offshore drilling, installation, and decommissioning.
"The strategic rationale is to combine Saipem and Subsea 7's fleets... this will allow us to serve our customers more efficiently, more promptly, with shorter schedules and lower costs", Saipem Chief Executive Alessandro Puliti said at a press briefing.
He said the group's legacy projects would be either completed or almost completed when the tie-up becomes operational so are not the main driving force for the deal.
Saipem is facing hurdles to finalise an offshore wind project at Courseulles-sur-Mer in France and a contract awarded by Thai Oil for the expansion of a refinery in Thailand.
Commenting on full-year results released late on Tuesday, Saipem's top executives said the group booked provisions in the final quarter to cover risks associated with the two projects.
The Italian group now expects to complete its scope of work for the French offshore wind project next year, one year after the initial schedule.
The costs expected for the two projects are already included in the group's medium term financial estimates, Saipem Chief Financial officer Paolo Calcagnini told analysts.
(Reporting by Francesca Landini;Editing by Elaine Hardcastle)
The main goal is to combine the fleets of Saipem and Subsea 7 to service customers more efficiently and reduce costs.
The merger is not expected to receive authorities' approvals until the second half of 2026.
Saipem is facing hurdles in finalizing an offshore wind project in France and a contract for refinery expansion in Thailand.
The combined group will have a fleet of around 60 vessels to serve the upstream oil industry.
Saipem's executives mentioned that the group booked provisions in the final quarter to cover risks associated with its offshore wind project and the refinery expansion.
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