Transocean to buy Songa Offshore for $1.8 billion
Transocean Ltd. plans to buy Songa Offshore SE for $1.8 billion subject to certain conditions. Terms call for the transaction to be paid mostly in stock and convertible bonds.
After closing, Transocean would acquire more equipment for drilling in harsh climates, including the Arctic. Four Songa rigs have long-term contracts with Statoil ASA. Songa has seven semi-submersible rigs total.
This was the latest drilling contractor consolidation.
Separately, Ensco PLC in May agreed to acquire Atwood Oceanics Inc. in a stock transaction worth $839 million (OGJ Online, May 30, 2017).
In March, Transocean sold some shallow water jack up rigs to Norway’s Borr Drilling. Transocean has said it wants to concentrate on deep water and ultra-deepwater drilling (OGJ Online, Mar. 20, 2017).