Two of the world’s top oil drilling companies, Transocean and GlobalSantaFe, said yesterday that they would merge to consolidate their position in a fast-growing market.
Under the terms of the cash-and-stock transaction, shareholders of Transocean and GlobalSantaFe will receive shares in a new company as well as $15 billion through a recapitalization plan. The combined company, which will be called Transocean, will have a global fleet of 146 drilling rigs and 20,000 employees.
The combination gives Transocean a 20 percent market share of drilling rigs like jack-up rigs, semi-submersibles and drill ships. The new company will own 48 units in the fast-growing segment of deepwater rigs able to drill in 3,000 feet of water or more. According to the consulting firm ODS-Petrodata, that would be one fewer than the combined deepwater fleets of their main rivals — Diamond Offshore Drilling, Noble, Seadrill and Ensco International.
Energy companies are scrambling to lock in offshore rigs to drill in the current high-price environment. Drillers have been struggling to meet demand, with waiting periods sometimes stretching into years.
Analysts say that most large American drillers have been slow in expanding their fleets. Together, Transocean and GlobalSantaFe have only five rigs under construction, out of a total of 138 being built.
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Under the terms of the cash-and-stock transaction, shareholders of Transocean and GlobalSantaFe will receive shares in a new company as well as $15 billion through a recapitalization plan. The combined company, which will be called Transocean, will have a global fleet of 146 drilling rigs and 20,000 employees.
The combination gives Transocean a 20 percent market share of drilling rigs like jack-up rigs, semi-submersibles and drill ships. The new company will own 48 units in the fast-growing segment of deepwater rigs able to drill in 3,000 feet of water or more. According to the consulting firm ODS-Petrodata, that would be one fewer than the combined deepwater fleets of their main rivals — Diamond Offshore Drilling, Noble, Seadrill and Ensco International.
Energy companies are scrambling to lock in offshore rigs to drill in the current high-price environment. Drillers have been struggling to meet demand, with waiting periods sometimes stretching into years.
Analysts say that most large American drillers have been slow in expanding their fleets. Together, Transocean and GlobalSantaFe have only five rigs under construction, out of a total of 138 being built.
Discuss Add this link to... Bury
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