Transocean agreed to buy Songa Offshore in the biggest offshore drilling industry deal since oil prices collapsed three years ago.
The enterprise value is about US$3.4 billion, half of which is Songa debt assumed by the combined entity, the companies said. The 47.5 Nowegian kroner a share offer implies an equity value for Norway’s Songa of about $1.2bn. The transaction, pre-accepted by 77 per cent of Songa investors, will be settled in shares, cash and a convertible bond.
Songa shares surged as much as 37 per cent on a deal that will add four harsh-environment, semi-submersible rigs to Transocean’s fleet. Those vessels - on long-term contracts with Norwegian oil producer Statoil - will boost the contract backlog of the world’s largest offshore driller by 40 per cent to $14.3bn as the industry recovers from the worst slump in a generation.
"The acquisition will strengthen Transocean’s position as the leading offshore driller with exposure to deep- and harsh-water markets,” said the Transocean chief executive Jeremy Thigpen. “Songa Offshore is an excellent strategic fit.”
Songa shares were 30 per cent higher at 44.30 kroner as of 10:40am in Oslo.
_______________
Read more:
Topaz to help Dragon Oil develop Turkmenistan’s offshore oil and gas
Adnoc in talks with energy companies over renewal of major offshore oil concession
Baker Hughes clinches major Papua New Guinea gasfield services contract
_______________
The offer is “attractive” for Songa, while Transocean gets a “very strong backlog,” said Vidar Lyngvaer, an analyst at SpareBank 1 Markets.
The transaction follows Transocean’s sale of its entire fleet of jack-up rigs to Borr Drilling for $1.35bn earlier this year, and rival Ensco’s proposed acquisition of Atwood Oceanics for $863 million. The collapse of oil prices in 2014 coincided with an influx of new rigs into the market.
Transocean’s purchase of Songa also includes three additional semi-submersible rigs, pushing the combined company’s fleet to 51 floating rigs, in addition to four drill ships under construction. Transocean said it may scrap some of the older units.
Apart from Songa debt, the deal’s $3.4bn enterprise value includes an estimated $660m Transocean convertible bond, $540m of Transocean equity and $480m of cash. The deal is expected to close during the fourth quarter, the company said.
The deal would make Perestroika, Songa’s biggest owner, Transocean’s largest shareholder with a stake of about 12 per cent. Perestroika’s owner and Songa chairman Frederik W Mohn would join Transocean’s board.
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
Company profile
Company name: Nestrom
Started: 2017
Co-founders: Yousef Wadi, Kanaan Manasrah and Shadi Shalabi
Based: Jordan
Sector: Technology
Initial investment: Close to $100,000
Investors: Propeller, 500 Startups, Wamda Capital, Agrimatico, Techstars and some angel investors
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
The specs: 2018 Audi Q5/SQ5
Price, base: Dh183,900 / Dh249,000
Engine: 2.0L, turbocharged in-line four-cylinder / 3.0L, turbocharged V6
Gearbox: Seven-speed automatic / Eight-speed automatic
Power: 252hp @ 5,000rpm / 354hp @ 5,400rpm
Torque: 370Nm @ 1,600rpm / 500Nm @ 1,370rpm
Fuel economy: combined 7.2L / 100km / 8.3L / 100km
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
-
-
-
-
-
-
-
-
-
Political flags or banners
-
Bikes, skateboards or scooters
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
