Saipem and Egypt’s Modern Drilling Company (MDC) signed a memorandum of understanding to explore cooperation in offshore drilling, beginning with the Egyptian market and potentially extending to other countries of shared interest. Saipem published the announcement on October 22, 2026. The company described MDC as a drilling contractor operating in Egypt and the wider Middle East and North Africa region.

The memorandum establishes a non-exclusive framework for identifying and developing possible offshore drilling business initiatives. The companies said they would assess the appropriate form of cooperation separately for each opportunity, including the possibility of a joint venture, consortium or project-specific agreement. The announcement does not name a client, field, rig, contract value or timetable, and it does not say that either firm has received an offshore drilling award under the arrangement.

A joint coordination committee is expected to monitor market developments, identify opportunities that may interest both companies and outline next steps. Saipem said potential cooperation could also include sharing technical experience, project execution support, asset management and training. Those are areas the memorandum may cover; the company did not announce a defined work programme or quantify planned training, personnel, equipment or investment.

The initial focus on Egypt places the arrangement in a market where both international service providers and domestic drilling contractors can assess offshore prospects. Saipem presented the memorandum as a way to strengthen its position and seek industrial synergies, but did not describe a specific operational outcome. MDC and Saipem will need to identify a project and agree its commercial and technical structure before the framework could lead to work in the field.

For now, the announcement is a cooperation framework rather than a service contract. Its non-exclusive nature also means the release does not establish a sole partnership or prevent either party from pursuing other opportunities. The next material evidence would be a named prospect, a project-specific agreement or a contract award, with scope and responsibilities disclosed. Until then, the memorandum signals intent to evaluate opportunities, not drilling activity already under way.