Late yesterday evening, Saipem transferred to KCA Deutag ("KCAD") its onshore drilling assets in Latin America corresponding to 44 rigs. The transaction is part of the agreement for the sale of the onshore drilling business, announced on June 1, 2022, which provides for the sale by Saipem to KCA Deutag of its entire onshore drilling activities, for an overall cash consideration of 550 million USD (subject to standard price adjustments), in addition to a 10% share participation in KCAD itself.
The consideration for the transfer, completed late yesterday evening, is approximately 40 million USD (subject to standard price adjustments). In addition to the assets in Latin America mentioned above, to date the assets in Saudi Arabia, Congo, the United Arab Emirates, Morocco and Kuwait have been transferred.
Under the terms of the aforementioned agreement, it is expected that the remaining onshore drilling activities will be transferred by September 30, 2023, against the remaining part of the transaction consideration, amounting to 15 million USD (also subject to standard price adjustments).
The transaction represents for Saipem the achievement of an important milestone towards a resilient business model, focused on high-growth markets, and an optimisation of the capital structure and liquidity targets.