Markets
Saipem and MDC form offshore drilling partnership in Egypt
Italian oilfield services provider Saipem has joined forces with the Modern Drilling Company to explore offshore opportunities in Egypt.
Key points
- Saipem and Modern Drilling Company sign non-exclusive memorandum of understanding.
- Collaboration framework allows for joint ventures, consortia, and regional expansion.
- Agreement follows Saipem's recent $350m offshore contract win in Angola from Azule Energy.
Italian engineering firm Saipem has established a strategic partnership with the Modern Drilling Company to investigate prospective ventures in offshore drilling, according to reporting by Offshore Technology. The initial focus of the non-exclusive memorandum of understanding rests on the Egyptian market, though the arrangement allows for geographic expansion if both parties mutually agree.
What happened
Under the terms of the framework, the two entities will evaluate various cooperative structures to execute new business initiatives. These potential models include project-specific agreements, consortia, and formal joint ventures. To guide the initiative, a joint coordination committee will oversee progress by monitoring market shifts, identifying mutually beneficial projects, and planning subsequent operational steps. The scope of cooperation is expected to cover technical knowledge sharing, implementation assistance, asset management, and specialized training services.
Saipem indicated that the arrangement strengthens its commercial position within Egypt, describing the jurisdiction as strategically vital for its broader operational footprint. The company intends to leverage this cooperative framework to construct new industrial synergies within the offshore energy sector.
This development follows a separate offshore contract secured by Saipem in Angola during the preceding month. Valued at approximately $350 million, that agreement was awarded by Azule Energy Angola, a joint venture between Eni and BP. The Angolan project involves engineering, fabrication, transport, and subsea infrastructure installation for the West Hub Tails initiative, which forms part of the Agogo Integrated West Hub Development located 180km off the coast in water depths reaching up to 1,750 metres. The scheduled duration for the Angolan project spans approximately two and a half years.
Why it matters
For regional energy markets across the African continent, deepening offshore technical collaboration highlights ongoing investments in hydrocarbon production and upstream infrastructure. World Bank figures indicate that Egypt achieved full electricity access and complete clean cooking access by 2024, with fuel exports representing 9.8 percent of merchandise exports in 2025, alongside a renewable electricity share of 12.2 percent recorded in 2021.
For international investors, energy professionals, and regulators, partnerships between global contractors and national entities signal a prevailing strategy to mitigate operational risks through localized cooperation and shared technical expertise. With Brent spot prices reaching $115.22 per barrel on 20 October 2026, according to United States Energy Information Administration data, upstream service providers are positioning themselves to capture capital expenditure within key African basins, balancing high commodity price environments with complex offshore deployment demands.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Exchange rates and the cost of capital shape every energy project, especially in emerging markets where equipment is priced in dollars.
₦1,329.80 per US dollar, reference rate todayCountries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
