Italian energy services group Saipem said on June 1 it had agreed to sell its drilling onshore business to British-based oil drilling contractor KCA Deutag for $550 million.

As part of the deal – which takes the Italian company further in the achievement of its capital structure and liquidity objectives – Saipem will also get a 10% stake in the combined entity, it said in a statement.

Saipem operates its drilling onshore business outside Italy, with a focus in the Middle East and Americas and a portfolio of 83 proprietary land rigs, it added.