Transocean, the world's largest offshore drilling contractor, agreed on Monday to sell 38 rigs in so-called shallow water to a private equity consortium for $1.05 billion.
Under the terms of the agreement, Transocean will receive $855 million in cash and $195 million worth of preferred shares of an affiliate of Shelf Drilling, according to a company statement.
Shelf Drilling is a newly created company owned by the private equity firms Castle Harlan, Champ Private Equity and Lime Rock Partners, which will operate in Southeast Asia, India, West Africa, the Middle East and the Mediterranean.
“This is an exciting opportunity with great potential,†Shelf Drilling's chief executive, David Mullen, said in a statement. “Our strategy will be to maintain an exclusive focus on shallow water drilling.â€
Transocean, which is based near Geneva, was at the center of the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. The company owned the rig tha t exploded, killing 11 people.
The company said it would now focus its operations on more specialized equipment.
The deal is expected to close by the end of the year.
