Italian oil services group Saipem is looking round for growth opportunities after a bid by rival Subsea 7 for U.S. contractor McDermott sent waves through the sector.

"The bid is a sign of consolidation in the sector that needs to be monitored closely," Saipem CEO Stefano Cao said on April 24 in a conference call after first quarter results.

Subsea 7 made an unsolicited offer worth about $2 billion for McDermott on April 23.

The move comes after Schlumberger and Subsea 7 started talks earlier this year to form a joint venture to deliver subsea installations and services.

Oil firms have returned to profit thanks to higher oil prices and cost cuts made in the downturn but their suppliers are still feeling the squeeze.

Cao, who said there were some timid signals of recovery in the industry, added that consolidation of the sector usually came with an upturn.

"There's no reason why it shouldn't happen in the future," Cao said, adding parts of its business could be combined with other companies.

"The onshore drilling business could be a candidate for integration with other operators in the sector."