Transocean acquires interest in harsh-environment newbuild semisubmersible

Transocean announced that, through a joint venture with funds managed and/or advised by Hayfin Capital Management, it has purchased a 33.3% interest in the West Rigel, a newbuild harsh-environment semisubmersible. The total purchase price for the rig, built by Sembcorp Marine Jurong Shipyard, is $500 million.

Transocean has initially invested $83 million in the joint venture, with an additional investment of $83 million to be made at a later date, in accordance with the terms of the joint venture arrangements with Hayfin. Transocean has also invested $8 million for working capital, which includes upgrades and activation cost with additional amounts to be later funded. The rig is expected to be delivered in Q4 2018 and available for charter in Q1 2019.

The rig, renamed the Transocean Norge, is a Moss Maritime CS60 design harsh-environment semisubmersible and is considered to be among the most capable newbuild semisubmersibles in the world, according to Transocean. Transocean possesses the exclusive right to market and operate the Transocean Norge and will immediately begin engagement with customers.

Jeremy Thigpen, Transocean President and Chief Executive Officer, remarked, “Our interest in the Transocean Norge, along with the recent acquisition of Songa Offshore, underscores our commitment to high-grading our fleet in a financially prudent manner to provide our customers with the drilling assets and expertise they seek for projects in harsh environment and ultra-deepwater environments. Given the strong demand and improving utilization and dayrates for this class of rig, we expect to secure work for the Transocean Norge in the near future.”