Italian energy group Eni has agreed to sell a 12.5% stake in its engineering & construction, and drilling subsidiary business Saipem.

Eni currently owns 42.93% of Saipem, in partnership with Dodge & Cox and the People's Bank of China, who own 12.1%, and 2.035% respectively.

Saipem will sell its 12.5% stake to the shareholding company Fondo Strategico Italiano (FSI) for around €400 million.

In addition, Saipem will pay off its debt to Eni, which is said to be around €6.1 billion.