Transocean to acquire Songa Offshore

Transocean has agreed to acquire the entire share capital of Songa Offshore, under a transaction estimated at around $3.4 billion.

Offshore staff

ZUG, SwitzerlandTransocean has agreed to acquire the entire share capital of Songa Offshore, under a transaction estimated at around $3.4 billion.

The combined company will likely establish a Harsh Environment Center of Excellence in Norway to serve theNorth Sea and other harsh environment markets.

“The combination of Songa Offshore andTransocean is a strategic fit,” said Frederik W. Mohn, chairman of Songa Offshore. “By adding Songa Offshore’s four Cat-D rigs to Transocean’s existing harsh environment fleet, the combined company will be the leader within this segment which is showing signs of recovery.”

Transocean CEO Jeremy Thigpen added: “The acquisition will strengthen Transocean’s position as the leading offshore driller with exposure to deep- and harsh-water markets. Upon closing, Transocean will add four high-specification harsh environment floaters, in addition to three legacy mid-water harsh environment rigs…”

Assuming shareholder approval for the transaction, Mohn will be nominated to serve as director on the Transocean board.

The combined company will operate a fleet of 51mobile offshore drilling units (with a contract backlog of $14.3 billion) comprising 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters, and seven midwater floaters.

Additionally, Transocean has four ultra-deepwater drillships under construction, including two contracted with Shell for 10 years each. Transocean also anticipates re-ranking the combined fleet, which may lead to some rigs being recycled.

08/15/2017

More in Business Briefs