An Unbiased View of Tag Archives: Jack up rig - ship broker eu

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Image: The Jack-up Transocean Constellation II. Oil Rigs Now Houston about Transocean Ltd. (NYSE:RIG) The overseas drilling Market is suffering through the worst bear cycle in history. The oil crash that began late in 2014 has had a horrible effect especially on the offshore drilling players such as Transocean, Seadrill (NYSE:SDRL), Rowan Companies (NYSE:RDC), Ensco Plc.

Consequently, competition is naturally becoming fiercer, due to the fact that the overseas jack-up market (shallow waters) and the offshore floater market are oversupplied by a wide range of rigs, modern-day and old, that contend against each other for an extremely limited amount of contracts at low day rate, typically near breakeven level. Transocean is the uncontested leader in the deep water sector (floaters) with an excellent stockpile approximated at over $10.

Today, this post has to do with the jack-up part of Transocean which may be divested to Borr Drilling, a brand-new company formed in Norway. We discovered on Friday by Evercore ISI's James West and group, who were commenting about a news initially revealed by Tradewinds: We noted in our Wrap-up and Weekly that Borr Drilling was apparently interested in purchasing Transocean's jackup fleet.

2 billion offer to obtain a fleet of 15 RIG jackups. The possible transaction would require Transocean's entire active fleet of 10 high-specification jack-ups, plus another 5 newbuilds under construction at Singapore's Keppel FELS, for a total price of $1. 2 billion. Another $1. 125 billion is due on the 5 newbuilds, which would be presumed by Borr Drilling as these rigs have actually been delayed until 2020.

Half of Transocean's active jack-up fleet is presently stacked while the other half is contracted for 38 rig months (average 7. 6 months per rig) for $172 million in stockpile (just 1. 5% of RIG's overall $11. 3 billion). [note from Enjoyable trading: stockpile is now $10. 8 billion and JU stockpile represents $161 million] We would be aggressive buyers of Transocean if this deal emerges, as it would monetize an under-utilized jack-up fleet that averages 13.