Activity in the offshore drilling sector is picking up. However, it is not contracting activity but merger activity that is starting to gain traction. Transocean is the second driller to step up and make an acquisition this year. This move follows the divestiture of their jackup fleet to Borr Drilling, which took place during the second quarter. Prior to Ensco’s announcement to acquire Atwood Oceanics, there had only been a handful of second-hand rig transactions.
Transocean is acquiring Songa Offshore, in a public offering for the entire share capital of Songa. The combined fleet will have 51 rigs – 30 ultra-deepwater floaters, 11 harsh environment floaters, 3 deepwater floaters, 7 midwater floaters, giving Transocean the largest floating rig fleet as compared to the floating rig fleets of other offshore drilling contractors. Upon completion of this transaction, Transocean will have one of the most technically capable harsh environment fleets in the industry.
Excluding newbuilds, the average age of the combined contracted floater fleet is around 13 years. According to Rystad Energy’s RigCube database, combined, the two companies will have approximately 90 years of contracted rig backlog, followed by Seadrill and Diamond Offshore with approximately 25 years each.
Note: Average age excludes newbuilds not yet delivered. Seadrill (includes all consolidated companies). Fleet comparison only looking at floating rig fleets of selected drilling contractors (jackups excluded from chart).
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Contact: Oddmund Føre, Senior Analyst
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