In a move that would create one of the most diversified engineering and construction firms in the offshore industry Subsea 7 and Saipem announced plans to merge on 23 February, 2025.
The combined company, to be listed on both the Milan and Oslo stock exchanges, will have a combined backlog of €43 billion, revenue of approximately €20 billion and EBITDA in excess of €2 billion. It will become a company of over 45,000 people including more than 9,000 engineers and project managers.
Rumblings of a merger have been around the market for some time, indeed, we provided an initial analysis of what the combined company would look like back in 2019 when the concept was first explored.
Here, we update our analysis with a look at how the proposed Saipem7 will reshape the sector when closing in the anticipated timeline of the second half of 2026.
A Combined Powerhouse in Offshore Construction
Saipem and Subsea 7 have predominantly been competitors, yet there is also a long history of collaboration between the two. In 2023, they announced a commercial collaboration agreement (with Seaway7, part of the Subsea7 group) to jointly identify, bid and execute fixed offshore wind projects. Notably, that same year, Seaway Aimery installed cables on Seagreen 1 while Saipem 7000 was installing the foundations at the same project.
The two companies have also worked together on oil and gas projects including Türkiye’s Sakarya gas field.
Saipem’s merger announcement stated, “The management of both Saipem and Subsea7 share the conviction that there is compelling logic in creating a global leader in energy services, particularly considering the growing size of clients’ projects.
“Saipem and Subsea7 are highly complementary in terms of market offerings and geographies. The combination would enhance value for shareholders, and all stakeholders, both in the current market and in the long term.”
The move consolidates 40 currently active construction vessels, spanning subsea, heavy lift, and renewables. It also brings together 12 pipelayers, creating the largest pipelay fleet in the industry by a wide margin. The fleet would be highly diversified, strengthening its ability to execute complex offshore projects.
In offshore wind, the combination of the two fleets would enhance wind farm installation capabilities, bringing the semisub Saipem 7000 and WTIV Seaway Ventus together, along with a fleet of cable-layers with a strong track record.
This could allow the company to execute full wind farm installation projects entirely in-house. Beyond installation, Seaway operates a fleet of Heavy Load Carriers, and Saipem has experience in jacket foundation manufacturing.
In oil & gas, the expanded pipelaying and subsea construction fleet could install rigid pipelines in J-lay, S-lay, and reel-lay along with a large flex-lay fleet with global reach.
Regulatory and shareholder approvals are still pending so much remains to be seen. However, for now it looks like the main outcome will be renewed efficiencies in oil and gas operations. Whether Saipem7 will become a global offshore wind leader depends on how it allocates its vessels between industries and whether it chooses to further invest in its wind fleet.
See our original post on LinkedIn here.
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