Transocean to sell off shallow water rigs

jack-upSEPTEMBER 10, 2012—Increasing its focus on deepwater, giant offshore drilling contractor Transocean Ltd. has inked a definitive agreements to sell 38 shallow water drilling rigs to a newly formed company Shelf Drilling International Holdings, Ltd., based in Dubai, for $855 million in cash and another $195 million in seller financing. 

Shelf Drilling is a newly formed company sponsored equally by Castle Harlan, Inc., CHAMP Private Equity and Lime Rock Partners. Shelf Drilling will focus on shallow water drilling activity in the Middle East, Africa and Asia. Nineteen the rigs to be acquired by Shelf Drilling are in Asia.

The seller financing will be in the form of preference shares issued by an affiliate of Shelf Drilling. As a component of the agreement, Transocean will provide various transition support services to Shelf Drilling for a period subsequent to the closing of the transactions. The transactions are expected to close in the fourth quarter of 2012, subject to certain conditions.

"This agreement marks an important milestone in our asset strategy to increase our focus on high-specification floaters and jackups, improving our long-term competitiveness," said Steven L. Newman, President and Chief Executive Officer of Transocean Ltd.

David Mullen, President and Chief Executive Officer of Shelf Drilling, added, "This is an exciting opportunity with great potential. Our strategy will be to maintain an exclusive focus on shallow water drilling, leveraging decades of complementary industry experience of management, three leading investment firms, and our employees, to provide best in class drilling operations for our customers."

As of today, Transocean, which has corporate offices in Zug, Switzerland, Houston, TX, and the Cayman Islands, owns or has partial ownership interests in, and operates a fleet of, 115 mobile offshore drilling units. These consist of 48 Ultra-Deepwater, Deepwater and Harsh-Environment drilling rigs, 25 Midwater Floaters, nine High-Specification Jackups, 32 Standard Jackups and one swamp barge. Transocean also has two Ultra-Deepwater Drillships and three High-Specification Jackups under construction.

RIGS BEING ACQUIRED BY SHELF DRILLING

         

Jackups

Design

Year Entered Service (1)

Water Depth (Feet)

Location

C.E. Thornton

MLT 53-SC (converted to MLT 116-C)

1974

300

India

Compact Driller

MLT 116-C

1992

300

Thailand

F.G. McClintock

MLT 53-C

1975

300

India

Galveston Key

MLT 116-S (converted to 116CS)

1978

300

Malaysia

GSF Adriatic I (3)

MLT 116-C

1981

300

Malaysia

GSF Adriatic IX

MLT 116-C

1981

350

Nigeria

GSF Adriatic V (3)

MLT 116-C

1979

300

Gabon

GSF Adriatic VI (3)

MLT 116-C

1981

328

Malaysia

GSF Adriatic X

MLT 116-C

1982

350

Nigeria

GSF Baltic

MLT Super 300

1983

375

Nigeria

GSF High Island II

MLT 82-SD-C

1979

270

Saudi Arabia

GSF High Island IV

MLT 82-SD-C

1980/2001

270

Saudi Arabia

GSF High Island IX (2)

MLT 82-SD-C

1983

250

Saudi Arabia

GSF High Island V (3)

MLT 82-SD-C

1981

270

Gabon

GSF High Island VII

MLT 82-SD-C

1982

250

Cameroon

GSF Key Gibraltar

MLT 84-C (modified to 116-C)

1976/1996

300

Thailand

GSF Key Hawaii

Modec 300-C35

1982

300

Vietnam

GSF Key Manhattan

MLT 116-C

1980

350

Italy

GSF Key Singapore (3)

MLT 116-C

1982

350

Egypt

GSF Main Pass I

F&G L-780-Mod II

1982

300

Saudi Arabia

GSF Main Pass IV

F&G L-780-Mod II

1982

300

Saudi Arabia

GSF Parameswara

Baker Marine BMC-300-IC

1983

300

Indonesia

GSF Rig 105

MLT 52-C

1975

250

Egypt

GSF Rig 124

Modec 200C-45

1980

250

Egypt

GSF Rig 141

MLT 82-SD-C

1982

250

Egypt

Harvey H. Ward

F&G L-780-Mod II

1981

300

Indonesia

J.T. Angel

F&G L-780-Mod II

1982

300

India

Randolph Yost (2)

MLT 116-C

1979

300

Shipyard

Ron Tappmeyer

MLT 116-C

1978

300

India

Transocean Comet

Sonat cantilever

1980

250

Egypt

Trident 15

Modec 300 C-38

1982

300

Thailand

Trident 16

Modec 300 C-38

1982

300

Thailand

Trident II

MLT 116-C

1977/1985

300

India

Trident IX

Modec 400 C-35

1982

400

Malaysia

Trident VIII

Modec 300 C-35

1981

300

Gabon

Trident XII

Baker Marine BMC-300-IC

1982/1992

300

India

Trident XIV

Baker Marine BMC-300-IC

1982/1994

300

Angola

         

Swamp Barge

       

Hibiscus

Heavy Swamp Barge

1979/1993

25

Indonesia

         

(1) Dates shown are the original service date and the date of the most recent upgrade, if any.

 

(2) Rig is currently undergoing reactivation.

     

(3) Rig is currently stacked.

     
             

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