A merger between two of the energy industry’s largest drillers could create a new heavyweight player within the geothermal sector, bringing with it fresh ideas, new technology and huge financial clout.
Italy’s Saipem and Norway’s Subsea7, best-known for their work across the global oil and gas industry, first announced their intention to merge earlier this year.
The new entity — to be renamed Saipem7, with combined revenues of some €21bn, and to be headquartered in Milan — will also have a strong interest in the emerging technologies being utilised across the geothermal field.
While the completion of the merger is not anticipated until well into 2026, the concentration of resources and huge expertise in drilling could yield significant gains for the advancement of the geothermal industry.
Announcing the rationale behind the merger, the two companies said that the new combined entity would offer a full spectrum of offshore and onshore services for clients working in renewable energy, as well as oil and gas, and carbon capture.
It also builds on existing work, particular by Saipem, which last year announced its intention to accelerate research and development in the geothermal energy world.
That included, for example, a collaboration with Geolog and Ignis H2 Energy to develop advanced technological solutions and conduct feasibilities studies for new geothermal plants in order to obtain clean and renewable energy, both in Italy and worldwide.
At the time, Saipem said the pact formed a part of its wider research and development efforts dedicated to offering geothermal technological solutions and for other energy transition applications.
Saipem also added that its three main areas of interest in the sector relate to next-generation geothermal energy systems, offshore geothermal energy and the conversion of oil and gas wells.