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

by  Matthew V. Veazey

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Rigzone Staff

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Tuesday, September 04, 2018

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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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