Singapore’s Energy Drilling has completed the US$85 million acquisition of three tender assist rigs from Seadrill.
The global drilling market is bouncing back from a decade in the doldrums and, while the long-awaited recovery is mainly focused on drillships and semi-submersibles, shallow water-rig owners are also starting to reap the benefit of increasing demand and improved dayrates.
Energy Drilling on Friday confirmed it now owns the modern, high-specification tender assist drilling rigs T-15, T-16 and Vencedor, which doubles its fleet size to six units.
In tandem with this acquisition, Energy Drilling has signed a new three-year contract with Thailand’s national upstream company PTTEP for the T-15, which is expected to add more than US$120 million in additional contract backlog.
The Singapore rig contractor said this acquisition “creates an industry-leading tender assist drilling company, with the most modern and high specification fleet”.
The enlarged company will have a streamlined cost structure and will be well-positioned for further growth given its strong cash flow generation and very modest debt levels, it added.
Commenting on the transaction and market conditions, Energy Drilling chief executive Marcus Chew, said: “This acquisition is truly transformational for Energy Drilling and will enable us to scale the organisation rapidly. The timing is also optimal as the market continues to improve with higher utilisation rates and higher contract rates.
“We are actively engaged in several tenders, and we expect to have some positive news to announce in the coming months.”