In a move that could reshape the future of offshore energy, two industry giants—Saipem and Subsea7—have unveiled plans for a groundbreaking merger. Dubbed Saipem7, this new entity promises to become a global powerhouse in subsea engineering and construction, combining decades of expertise, cutting-edge technology, and a workforce of over 45,000 professionals. Here’s everything you need to know about this seismic shift in the energy sector.
A Match Made in Offshore Heaven
Saipem, Italy’s engineering and drilling heavyweight, and Subsea7, a global leader in subsea services, have signed a memorandum of understanding (MoU) to explore a merger that could create a $20 billion revenue behemoth. The deal, structured as a cross-border merger of equals, would bring together complementary strengths in offshore and onshore services, spanning over 60 countries.
The combined entity would boast a staggering backlog of €43 billion, with an EBITDA of over €2 billion. But it’s not just about the numbers—this merger is about synergy. With over 60 construction vessels and a fleet capable of handling everything from shallow water to ultra-deepwater operations, Saipem7 is poised to dominate the subsea and offshore energy markets.
Why This Merger Matters
The energy sector is undergoing a seismic transformation, driven by the need for sustainable solutions and the growing complexity of offshore projects. Saipem and Subsea7 see this merger as a strategic response to these challenges. By pooling their resources, the two companies aim to enhance their competitive edge, streamline operations, and deliver unparalleled value to clients.
The merger also reflects a broader trend in the industry. With rumors swirling about potential tie-ups between other energy giants like BP and Shell, this deal could set the stage for a wave of consolidation. As Eni’s CEO, Claudio Descalzi, put it: “We are creating a global leader of significant industrial and technological value.”
What’s Next for Saipem7?
The road to completion is still long. The merger is expected to be finalized in the second half of 2026, pending approvals from both companies’ boards, the Italian government, and other regulatory bodies. Once complete, Saipem7 will operate across four key business units:
- Offshore Engineering & Construction: Led by John Evans, this division will operate autonomously under the brand Subsea7 – a Saipem7 Company.
- Onshore Engineering & Construction: Focused on risk reduction and profitability maximization.
- Sustainable Infrastructures: Aiming to expand its footprint in Italy and beyond.
- Offshore Drilling: Dedicated to maximizing EBITDA and cash flow.
The merger will also see Subsea7 shareholders receive 6.688 Saipem shares for each share held, along with a €450 million cash dividend. Meanwhile, key stakeholders like Eni, CDP Equity, and Siem Industries have already pledged their support, forming a stable core group of shareholders.
A New Era for Offshore Energy
This merger isn’t just about creating a bigger company—it’s about building a smarter, more agile one. With a combined workforce of over 45,000, including 9,000 engineers and project managers, Saipem7 is set to tackle the most complex energy projects of the future. From sustainable infrastructure to cutting-edge subsea technology, this new entity is ready to lead the charge in the global energy transition.
As the industry watches closely, one thing is clear: the future of offshore energy has never looked more exciting.
