Shelf acquires Transocean rigs

Four Friede & Goldman L-780-Mod II jack-ups were sold to Shelf Drilling by Transocean

Shelf closes $1.05 B jack-up rigs acquisition

Transocean has completed the sale of 38 shallow water rigs to newcomer Shelf Drilling for $1.05 billion, the company announced on 30 November 2012.

Dubai-based Shelf Drilling will pay Transocean $855 million in cash and $195 million in seller financing in the form of preference shares issued by an affiliate of Shelf. In turn, Transocean will transfer 37 jack-ups and one swamp barge, Hibiscus. Shelf will also pick up as many as 3,500 employees from the deal.

Shelf expects to take control of seven rigs immediately. The company will assume full operations on the remaining jack-ups in 2013.

With this purchase, Shelf Drilling aims to become a leading global provider of shallow water drilling services in Southeast Asia, India, West Africa, the Middle East and Mediterranean.

‘We will seek to build a sustainable business that continues to grow to become the jack-up drilling contractor of choice for our customers, employees and investors,’ said David Mullen, CEO of Shelf Drilling.

Shelf is a private company, owned by Castle Harlan, CHAMP Private Equity and Lime Rock Partners.