Transocean Inc. Agrees to Sell Three U.S. GoM Jackups
HOUSTON--(BUSINESS WIRE)--Feb. 15, 2008--Transocean Inc. (NYSE:RIG) today announced that it has entered into a definitive agreement with Hercules Offshore, Inc. (Nasdaq:HERO) to sell three of its U.S. Gulf of Mexico jackup drilling rigs and related equipment for $320 million. The sales of the GSF Adriatic III, GSF High Island I and GSF High Island VIII will mark Transocean's exit from the shallow-water area of the U.S. Gulf of Mexico. The sales are expected to be consummated at the conclusion of each rig's current contract commitment and are subject to customary closing conditions, including regulatory approvals. The agreement has been approved by the Boards of Directors of both companies.
"This agreement is consistent with our practice of selling non-strategic assets at favorable prices," said Transocean Inc. CEO Bob Long. "These rig sales will take us out of the shallow-water area of the U.S. Gulf of Mexico and will allow us to redeploy our people to more strategic assets."
Built in 1982, the GSF Adriatic III is a Marathon LeTourneau 116C design jackup with a water depth capability of 350 feet. Built in 1979 and 1981, respectively, the GSF High Island I and the GSF High Island VIII are Marathon LeTourneau 82-SDC design jackups with a water depth capability of up to 250 feet.
Statements included in this news release regarding the consummation of the proposed transaction, regulatory approvals, redeployment of crews, price, our strategy, and other statements that are not historical facts, are forward-looking statements. These statements involve risks and uncertainties including, but not limited to, approvals by regulatory authorities or other third parties, conclusion of contract commitments, terms of the agreement, satisfaction of closing conditions, and other factors detailed in risk factors and elsewhere in the company's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. The company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise, except as required by law.
Transocean Inc. is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 139 mobile offshore drilling units plus eight ultra-deepwater units under construction, the company's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. The company owns or operates a contract drilling fleet of 39 High-Specification Floaters, 29 Midwater Floaters, 67 Jackups and four other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization of approximately $40 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
CONTACT: Transocean Inc., Houston
Gregory S. Panagos, 713-232-7551
Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.