Singapore: Songa Offshore has entered into an agreement with Singapore’s Opus Offshore Group for the sale of the rigs Songa Mercur and Songa Venus and the establishment of a strategic joint venture drilling management company.
Opus Offshore will acquire 100% of the rigs, which will be operated by the Songa-Opus JV. In addition to the Songa Mercur and Songa Venus, the Songa-Opus JV will operate additional assets including Opus Offshore's Tiger series of drillships currently under construction or on order with scheduled delivery between 2014 and 2017.
The purchase price for the Songa Mercur and the Songa Venus is $200m.
Opus Offshore will have an option to acquire Songa Offshore's 50% stake in the JV for $20m starting 30 months post inception of the Songa-Opus JV. This option will be valid for a 12-month period.
Opus Offshore was founded in Singapore in 2011 to focus on mid- and deepwater drillships. It is part of the Reignwood Group.
"I am very pleased to announce that we have sold our two Southeast Asia drilling Units, Songa Mercur and Songa Venus, and established a JV with Opus Offshore Group based on our Southeast Asia organization. The expected total transaction value to Songa Offshore is estimated to be between $180m and $235m, depending on the earn out and whether Opus Offshore Group will call the option for the JV . This is an important strategic milestone for Songa Offshore to become a focused harsh environment midwater drilling contractor," said Songa Offshore ceo Bjørnar Iversen. [25/04/14]