Transocean Inc. has entered into a definitive agreement with Hercules Offshore, Inc. to sell three of its U.S. Gulf of Mexico jackup drilling rigs and related equipment for $320 million. The sales of the GSF Adriatic III, GSF High Island I and GSF High Island VIII will mark Transocean's exit from the shallow-water area of the U.S. Gulf of Mexico. The sales are expected to be consummated at the conclusion of each rig's current contract commitment and are subject to customary closing conditions, including regulatory approvals. The agreement has been approved by the Boards of Directors of both companies.
"This agreement is consistent with our practice of selling non-strategic assets at favorable prices," said Transocean Inc. CEO Bob Long. "These rig sales will take us out of the shallow-water area of the U.S. Gulf of Mexico and will allow us to redeploy our people to more strategic assets."
Built in 1982, the GSF Adriatic III is a Marathon LeTourneau 116C design jackup with a water depth capability of 350 feet. Built in 1979 and 1981, respectively, the GSF High Island I and the GSF High Island VIII are Marathon LeTourneau 82-SDC design jackups with a water depth capability of up to 250 feet."
Long said Transocean is not abandoning the jackups, but will leave certain "niche" markets in order "to focus the company on the higher end of the market." The Gulf of Mexico, once home to one of the world's largest jackup fleets, has become something of a backwater in recent years, as the amount of oil and gas taken from shallow U.S. waters has fallen.
Further evidence DDI is clearly out there on the cutting edge as our whole focus is on the "higher end of the market". Good luck! -Fritz
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