The acquisition will enable Transocean to gain access to Songa Offshore’s four “Cat-D” harsh environment, semisubmersible drilling rigs on long-term contracts with Statoil in Norway.
Besides, the transaction is expected to strengthen Transocean’s position with the addition of Songa Offshore’s fleet that includes three additional semisubmersible drilling rigs.
Transocean president and chief executive officer Jeremy Thigpen said: “Songa Offshore is an excellent strategic fit for Transocean. With this combination, we add four new state-of-the-art Cat-D semisubmersible rigs to our existing fleet, further enhancing our position in the harsh environment market.”
The combined entity is expected to operate a fleet of 51 mobile offshore drilling units.
It will operate the fleet with a backlog of $14.3bn consisting of 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters and seven midwater floaters.
Songa Offshore chairman Frederik Wilhelm Mohn said: "The combination of Songa Offshore and Transocean is a strategic fit. The combined company will have an unparalleled backlog backed by strong counterparties.
“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."
Currently, Transocean has four ultra-deepwater drillships under construction, with two of them being contracted for Shell for a 10-year period each.
In line with its strategy of recycling older less capable rigs, Transocean expects re-ranking the fleet to be owned by the combined company that could result in additional rigs being recycled.
After the completion of the transaction, Transocean will remain headquartered in Zug, Switzerland, with an operating presence in Houston, Texas, Aberdeen, Scotland and Stavanger, Norway.
The transaction is expected to be completed during the fourth quarter of 2017.
As part of the deal, Transocean intends to set up a harsh environment center of excellence in Norway, which could support other harsh environment markets.
Image: Songa Equinox rig. Photo courtesy of © Songa Offshore.
