Transocean has announced that it is buying Norway's Songa Offshore in a deal valued at around US$3.4 billion that will see it increase its fleet to 51 vessels.
The deal is based on Transocean offering a price of Nkr47.50 ($5.96) per Songa share that is a 37 per cent premium on the five-day closing average, with Transocean saying it represents an enterprise value of Nkr 26.4 billion (US$3.4 billion).
The combined company will operate a fleet of 51 mobile offshore drilling units with backlog of USD $14.3 billion consisting of 30 ultra-deepwater floaters, 11 harsh environment floaters, three deepwater floaters and seven midwater floaters.
Jeremy D. Thigpen, president and chief executive officer of Transocean said: “Songa Offshore is an excellent strategic fit for Transocean. We also demonstrate our continued commitment to the Norwegian market and strengthen our technical and operational presence in that region. Importantly, we add approximately USD $4.1 billion in contract backlog to our already industry-leading backlog of USD $10.2 billion, which provides us with even more visibility to future cash flows in this challenging market.”
The transaction strengthens Transocean’s industry-leading position with the addition of Songa Offshore’s four “Cat-D” harsh environment, semisubmersible drilling rigs on long-term contracts with Statoil in Norway.
Frederik Wilhelm Mohn, chairman of Songa Offshore, said: "The combination of Songa Offshore and Transocean is a strategic fit. The combined company will have an unparalleled backlog backed by strong counterparties. By adding Songa Offshore's four Cat-D rigs to Transocean's existing harsh environment fleet, the combined company will be the leader within this segment which is showing signs of recovery."