Under the terms of the agreement, Saipem will sell its onshore drilling operations in the Middle East, Africa and the Americas to KCA Deutag for a total consideration of US$550m.

Currently, Saipem has transferred its operations in the Middle East and Africa to KCA Deutag, in exchange for a cash consideration of US$488m. Its operations in Saudi Arabia, Congo, United Arab Emirates (UAE) and Morocco have been transferred.

The company also obtains a 10% participation share in KCA Deutag and is entitled to appoint one member to the board of KCA Deutag. Saipem will receive the remaining consideration, on transferring the activities in the Americas, Kuwait, Kazakhstan and Romania, including five rigs and two active contracts.

The remaining activities are expected to be closed by 31 March 2023, subject to customary authorisations.