DEALS STRUCK ON SEVERAL OFFSHORE RIGS

May 28, 1990
While one U.S. company is preparing to build as many as six offshore drilling rigs, another plans to operate two rigs in the North Sea. Capital Maritime Corp., Greenwich, Conn., let a contract to Allison-McDermid, Brownsville, Tex., to build three jack ups with options for three more. In addition, Sonat Offshore Drilling Inc., Houston, and Arcade Shipping AS, Oslo, agreed to form a Norwegian offshore drilling company, Arcade Drilling AS.

While one U.S. company is preparing to build as many as six offshore drilling rigs, another plans to operate two rigs in the North Sea.

Capital Maritime Corp., Greenwich, Conn., let a contract to Allison-McDermid, Brownsville, Tex., to build three jack ups with options for three more.

In addition, Sonat Offshore Drilling Inc., Houston, and Arcade Shipping AS, Oslo, agreed to form a Norwegian offshore drilling company, Arcade Drilling AS.

The Allison-McDermid rigs, which Capital will designate as its Optima 300 class, will be cantilever units equipped to operate in water depths to 300 ft. The first is to be delivered in April 1992.

The design is scheduled to be classed by the American Bureau of Shipping and certified by the U.K. Department of Energy.

SONAT-ARCADE DEAL

Arcade Drilling will own two semisubmersible rigs. Sonat will contribute its Henry Goodrich in exchange for $70 million cash and an equity interest in the new company.

Arcade Shipping will add a new Aker H-4.2 semisubmersible it acquired from South Korea's Hyundai Heavy Industry. It expects to have the rig ready for North Sea work this year.

Arcade Shipping will receive shares in the new company, which will assume Arcade's existing debt on the Aker rig. Arcade and Sonat expect to list Arcade Drilling on the Oslo Stock Exchange and perhaps another European exchange.

Sonat will operate the Henry Goodrich and the new Aker rig under a long term management contract with Arcade Drilling. The Goodrich is working in the North Sea for a unit of Texaco Inc.

Sonat's involvement hinges on certain things, including U.S. government approval.

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