Italian services giant will add another $280 million to its coffers thanks to the drillship Santorini, which it only acquired four months ago.
Compatriot Eni has awarded Saipem a two-year extension for the seventh-generation drillship. The 24-months contract, which will start in August, is in direct continuation of its existing lease – the Santorini is currently drilling for Eni in the US Gulf of Mexico.
The average dayrate for seventh-generation drillships last year was estimated at around $400,000 and is expected to increase to above $450,000 by 2025, Saipem earlier said. The dayrate for Eni’s extension equates to $383,037.
Saipem said that on top of the $280 million would be additional income linked to investments for improvements to the drillship for around $15 million.
The contractor paid $230 million for the seventh-generation unit, which it purchased from South Korea’s Samsung Heavy Industries. The drillship was originally ordered by Ocean Rig, but that order was cancelled in 2019 when Transocean acquired Ocean Rig.
Saipem subsequently signed a bareboat charter for the drillship with Samsung in 2021.
Article continues below the advert
Saipem said at the time of its purchase that its rationale for purchasing the Santorini “is based on an expected return on investment of more than 15%, with a payback period of five years estimated on the basis of the existing contract and the drillship’s commercial prospects”.
“The backlog of Saipem’s offshore drilling activity to date amounts to more than €1.5 billion ($1.483 billion), the highest value in the last six years,” the company said then.
The Santorini, which Saipem acquired last December, is capable of operating in water depths of up to 12,000 feet (more than 3500 metres).
The drillship is equipped with the latest digitalisation and automation solutions, ensuring the highest standards of safety and respect for the environment which place it at the top of the technological offering for ultra-deepwater projects, claimed Saipem.
“With this acquisition, Saipem confirms its competitive positioning in the ultra-deepwater drilling sector,” the company added.