Transocean LTD (NYSE:RIG) Purchases 33.3% Stake In New-Build Harsh Environment Semisubmersible

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Transocean LTD (NYSE:RIG) recently announced that it has acquired 33.% stake in the West Rigel, a new-build harsh environment semisubmersible through a joint venture with Hayfin Capital Management LLP. Built by Jurong Shipyard Pte Ltd. a subsidiary of Sembcorp Marine Ltd. the total purchase price of the West Rigel is $500 million. By the fourth quarter of 2018, the new Moss Maritime CS60 designed rig, to be renamed as Transocean Norge will be completely ready and can be chartered by the first half of next year.

Transocean To Get Exclusive Rights Of Rigs’ Operations

According to the agreement, Transocean will have the exclusive rights to operate as well as market the semisubmersible. The company as a part of the joint venture has already paid $83 million and will be paying another amount $83 million soon. The Swiss company has invested a total amount of $8million as working capital for the upgrades and activation and will be paying more funds to the subsidiary of Sembcorp later on.

Transocean’s Gearing Up To Improve Its Technical Capabilities

Apart from the investment in Sembcorp’s rig, Transocean recently also made another acquisition of Songa Offshore. Experts believe that one of the largest offshore drilling contractors in the world is putting all its efforts at improving the quality and number of its fleet. It will help the company offer its clients the best submersibles in terms of expertise and quality so that they can sustain and offer good support even in harsh as well as ultra-deepwater environments.

The President and Chief Executive Officer of Transocean, Jeremy Thigpen said, “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.”

The Vernier-based company believes that providing latest and updated rigs to its clients will ensure long-term opportunities and business associations for the company which will result in an increase in the value for its investors. The company has already started divesting the old and less-competitive rigs in favor of the latest new high-specification assets. These steps are sure to make the overall operations of Transocean more technically capable.