Ensco and Rowan – A merger of equals

October 9, 2018

Two of the leading offshore drilling contractors have agreed to merge creating an industry-leading drilling contractor capable of working across all water depths with a truly global footprint.

The combined fleet will be comprised of 82 units made up of 28 floaters and 54 jackups. Thirty-eight units out of the jackup fleet and 11 units of the floater fleet are high spec, giving the combined company one of the most capable fleets in the industry.

Through the merger with Rowan, Ensco will enter the harsh-environment Norwegian market where it had previously not had a footprint. This also creates the largest marketed, high-spec jackup drilling contractor in the Gulf of Mexico. The combined company will be very well positioned to benefit from the upturn in the offshore drilling sector.

Among the benefits of the merger is the large customer base the newly-combined company will have across majors, national oil companies and smaller independents. Many of the largest operators such as Saudi Aramco, BP, Chevron, ExxonMobil, and Shell as well as smaller operators like Cantium, GulfSlope, Fieldwood and Castex will now benefit from economies of scale and operational expertise across the globe.

The combined company’s balance sheet is estimated to have liquidity of approximately $3.9 billion, including $1.9 billion of cash and short-term investments providing financial flexibility. Total estimated revenue backlog for the combined entity is approximately $2.7 billion, excluding ARO Drilling’s backlog.


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Contacts

Liz Tysall
Senior Offshore Rig Analyst
Mobile: +1 281 725 76 28
liz.tysall@rystadenergy.com

Jo Friedmann
Senior Rig Analyst
Phone: +47 24 00 42 00
Mobile: +47 45 08 69 40
jo.friedmann@rystadenergy.com

Julia Weiss
SVP, Head of Marketing
Mobile: +47 48 29 87 61
julia.weiss@rystadenergy.com

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