Friday , August 12 2022

Saipem joint venture push with US drills line blank: sources



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The Italian petroleum service company, Saipem, is trying to attract major US rivals to joint ventures, but has so far failed to secure contracts to participate in drilling operations worth up to 1.5 billion euros ($ 6 billion). Reuters.

PHOTO PHOTO: Saipem logo seen on the Saipem deep water bridge in the port of Genoa, Italy, November 19, 2015 REUTERS / Alessandro Garofalo

Saipem, controlled by the Italian state lender CDP and oil company Eni, needs common business to revive growth and support its balance after years of falling margin.

Despite the recovery in oil prices this year, slowed demand continues to test prospects for oilfield service companies and is expected to launch consolidation in an industry that is still recovering from the fall in energy markets in 2014.

Saipem is considering options for land and offshore assets over the past nine months in an attempt to find a partner to help reduce costs, sources say.

The Milan-based company hired Citi last year to show interest in works on terrestrial platforms, including Patterson-UTI, Pioneer Energy Services and Helmerich and Paine, sources said.

He also addressed the Swiss drone Transocean, which has operations across the United States and Canada, to combine some of its assets, but talks failed to take off, one of the sources said.

Saipem and Transocean refused to comment while Patterson-UTI, Pioneer Energy Services and Helmerich and Paine representatives were not immediately available.

The largest Italian oil contractor began to look for joint venture partners last summer, but efforts have been hampered by difficult market conditions for international drills and high expectations in terms of prices.

Patterson-UTI, Pioneer and Helmerich and Paine are ranked as the leading oil drilling company in the United States, but are severely affected by the decline in industry and are taking cautious access to mergers and acquisitions (M & A), sources say.

In previous attempts to find a partner, Saipem chief Stefano Cao held talks with Subsea 7 2017, but the talks broke down, two sources said, and Subsea later joined the hostile approach to McDermott.

Saipem, who had recently written off his Venezuelan property, recorded a 30 percent fall in earnings in his offshore drill last year, while onshore job sales rose 24 percent to 135 million euros.

Additional reporting by David French in New York; Writing Pamela Barbaglia; Editing David Goodman

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