Transocean-Songa deal: Norwegian union expects ‘smooth process’
- Exploration & Production
Following an announcement that Transocean is buying its rival driller Songa Offshore in a $3.4 billion worth deal, the Norwegian workers union, Industri Energi, said it expects a smooth transition process.
Early on Tuesday, the Swiss-based driller Transocean reported its intention to acquire 100 percent of the issued and outstanding shares of Songa Offshore. The combination will create a company with 51 offshore drilling units with backlog of $14.3 billion. This includes Songa’s four Cat D rigs, all of which are employed by Statoil offshore Norway. Songa also has three other semi-sub rigs, which are currently unemployed.
Transocean has the Transocean Arctic semi-sub in operation on the Norwegian continental shelf and, later this year, the semi-sub Transocean Spitsbergen will also be coming back in operation.
The Association Director at Industri Energi Frode Alfheim said the merger will create the world’s largest rig company, pointing out that acquisitions in the offshore drilling industry are not unexpected.
To remind, another two offshore drillers, Ensco and Atwood Oceanics, are also currently working on their combination which will, if completed, make Ensco one of the world’s largest jack-up rig owners.
Alfheim also said he expects the companies to involve employee representatives right from the start. According to the union, representatives from both companies have already agreed to meet.
Offshore Energy Today Staff