Transocean Banks on Ultra-Deepwater Recovery with Ocean Rig Deal  | Rigzone

by  Matthew V. Veazey


Rigzone Staff


Tuesday, September 04, 2018


Transocean and Ocean Rig's merger could wrap up early next year.

Transocean Ltd. and Ocean Rig UDW Inc. have struck a definitive agreement under which the former will acquire the latter in a cash and stock transaction valued at approximately $2.7 billion, inclusive of Ocean Rig’s net debt, Transocean announced Tuesday.

“The proposed acquisition of Ocean Rig provides us with a unique opportunity to continue enhancing our fleet of ultra-deepwater and harsh environment floaters, without compromising our liquidity or overall balance sheet flexibility,” Jeremy Thigpen, Transocean’s president and CEO, said in a written statement announcing the proposed merger. “The combination of constructive and stable oil prices over the last several quarters, streamlined offshore project costs and undeniable reserve replacement challenges has driven a material increase in offshore contracting activity.”

Along those lines, adding Ocean Rig’s assets will augment Transocean’s fleet of ultra-deepwater drillships “and better position us to capitalize on what, we believe, is an imminent recovery in the ultra-deepwater market,” Thigpen noted.

According to Transocean, Ocean Rig’s fleet includes:

  • Nine high-specification ultra-deepwater drillships
  • Two harsh environment semisubmersibles
  • Two high-specification ultra-deepwater drillships under construction (slated for delivery in Third Quarter 2019 and Third Quarter 2020, respectively, by Samsung H....
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