Transocean LTD (NYSE:RIG) has inked a merger accord with Ocean Rig UDW Inc (NASDAQ:ORIG). As per the terms of the deal, Transocean will purchase Ocean Rig from ORIG in a stock transaction and cash deal valued at $2.7 billion. The company will issue 1.6128 share for every share of ORIG. The company will also pay a cash of $12.75 for each share. Therefore, the total value of each ORIG share is estimated at $32.28. The deal has got the nod of the board of directors of both the firms.
The fleet of ORIG consists of 2 harsh environment semisubmercibles and 9 high-specification ultra-deepwater drillships. ORIG is also constructing 2 high-specification ultra-deepwater drillships at Samsung Heavy Industries. The delivery of new builds is expected in Q3 2019 and Q3 2020.
Jeremy Thigpen, Chief Executive Officer and President of Transocean, said the takeover of Ocean Rig will improve the fleet of harsh environment floaters and ultra deepwater drillships without affecting the balance sheet. The company is in a favorable position owing to the stable oil prices in the last several quarters. Transocean will be able to capitalize on the opportunities with the help of highly efficient and modern ultra-deepwater drillships that are preferred by the clients. The merger with ORIG will help to lower operational costs for each rig and increase footprint in the markets of Norway, West Africa, and Brazil.
Transocean Norg Wins a Six Well Contract worth $89 million
Transocean has said harsh environment semisubmersible Transocean Norge bagged a six-well contract together with Equinor ASA (NYSE:EQNR). Transocean Norg will be managed by Transocean. Hayfin Capital owns a 67% stake and Transocean holds a 33% stake in the JV. The company will begin the contract valued at $89 million in July 2019. The project is expected to be completed in 300 days. According to Equinor, the six will be drilled in the Norwegian continental shelf.
Transocean Wins an Extension Contract for ultra-deepwater drillship Petrobras 10000
Transocean has announced the extension of the contract for ultra-deepwater drillship Petrobras 10000 for 790 days in offshore Brazil. As per the terms of the contract, Transocean will receive a daily royalty of 5%.