Saipem exercises purchase option on Samsung drillship

Italy’s Saipem has exercised its purchase option on drillship Santorini currently on charter from Samsung Heavy Industries.

The Milan-headquartered firm is paying $230m in cash for the seventh-generation floater currently working in the US Gulf of Mexico on a contract with Eni that expires in the third quarter of 2023.

Saipem said the investment decision is based on an expected return on investment of over 15%, with a payback period of five years, estimated on the basis of the existing contract and the vessel’s commercial prospects.

The company’s offshore drilling backlog to date stands at more than €1.5bn ($1.57bn), the highest value in the last six years. Saipem said its existing contracts, including options, cover about 80% of fleet commitment for 2023 and about 60% for 2024.

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