Transocean deal a sign of rising confidence

Betting on better times ahead, the rig supplier is building a stronger fleet

Transocean's proposed takeover of Ocean Rig underscores the offshore industry's belief that drilling in ultra-deepwater and harsh environments is set to increase over the next five years, and that rig rates will increase accordingly. The cash-and-stock deal is worth around $2.7bn including debt and gives Swiss-based market leader Transocean a 79% controlling stake in Athens-based Ocean Rig. The transaction, due to be completed in the first quarter of 2019, is subject to the approval of both firms' shareholders. The acquisition gives Transocean an extra nine ultra-deepwater drillships, two harsh environment semi-submersibles, and another two ultra-deepwater drillships now under construction.