Transocean to sell 38 shallow-water drilling rigs to Shelf Drilling for $1.05 bn

Transocean Ltd, the world's largest offshore drilling contractor, today said that it will sell 38 shallow-water drilling rigs to Shelf Drilling International Holdings Ltd for about $1.05 billion in cash.

The sale price includes approximately $855 million in cash, and $195 million in seller financing, which will be in the form of preference shares issued by an affiliate of Shelf Drilling.

Shelf Drilling is a newly-formed company, owned equally by private equity firms Castle Harlan, Inc., Champ Private Equity and Lime Rock Partners.

Post closing, Shelf Drilling will be a leading global provider of shallow water drilling services, owning 37 standard jackup rigs and one swamp barge.

The company will operate throughout South-East Asia, India, West Africa, the Middle-East and the Mediterranean.

Geneva, Switzerland-based Transocean is the world's largest offshore drilling contractor owning nearly half of the around 50 deepwater platforms worldwide.