Houston-headquartered Atlantica Tender Drilling and Singapore’s Energy Drilling have signed a letter of intent to merge the two companies, creating the world’s second largest tender drilling contractor.
The combined company will own and operate five rigs, representing 17% of the tender drilling market, and with total revenues of over $200m annually.
Kerry Kunz, CEO of Atlantica, commented: “This merger represents the starting point for an attractive growth strategy targeting to consolidate and expand in the drilling industry. Atlantica and Energy Drilling has the right assets, backlog and balance sheet to be a forward leaning M&A partner in the industry.”
“The two companies have performed drilling operations in multiple geographical locations for top clients such as Petrobras, Total and PTTEP. Our goal is to grow our combined company to provide our clients with cost effective, productive and safe drilling operations”, added Marcus Chew, CEO of Energy Drilling.
The transaction is expected to be completed in the third quarter of this year.