Ensco to Buy Rowan in $2.38 Bln Deal

By John Benny
Monday, October 8, 2018

Offshore driller Ensco Plc said on Monday it plans to buy smaller rival Rowan Cos Plc in an all-stock deal valued at $2.38 billion, as it looks to expand its fleet and benefit from a partnership with Saudi Aramco.

This is Ensco's second deal since OPEC-led efforts boosted oil prices in the second half of 2016. Ensco bought rival Atwood Oceanics in a similar deal last year.

Rowan shareholders will receive 2.215 Ensco shares for each share held. Following the close of the deal, Ensco shareholders will own 60.5 percent of the combined company.

The combined company, which will have an enterprise value of about $12 billion, will have a fleet consisting of 28 floating rigs and 54 jack-ups with drilling operations in the Gulf of Mexico, Brazil and West Africa, among others.

The company will benefit from Rowan's strategic joint venture with Saudi Aramco, Ensco CEO Carl Trowell said.

Rowan formed ARO Drilling with the state oil giant in 2016 to operate offshore drilling rigs in Saudi Arabia.

The total rig count of the combined company excludes Rowan's 50 percent interest in ARO Drilling.


(Reporting by Shanti S Nair; Editing by Shounak Dasgupta)

Categories: Offshore Finance Mergers & Acquisitions Offshore Energy Drilling Industry News Oil Rigs Jackup

Related Stories

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Sapura Energy Nets $720M from Multiple Drilling Services Contracts

Tokyo Gas Enters LNG Market in Philippines

Eco Wave Finds Partner for Wave Energy Project in India

Saipem’s Castorone Vessel on Its Way to Türkiye’s Largest Gas Field

Current News

Chuditch Gas Field Up for Summer Drilling Ops as Sunda Reshapes Ownership Structure

EnQuest Bags Two Production Sharing Contracts off Indonesia

Hanwha Drilling’s Tidal Action Drillship En Route to Petrobras’ Roncador Field

China's ENN, Zhenhua Oil Ink LNG Supply Deals with ADNOC

MODEC Wins ExxonMobil Guyana’s Hammerhead FPSO Contract

India Stretches Bids Deadline for 13 Offshore Deep-Sea Mineral Blocks

Indonesia Awards Oil and Gas Blocks to Boost Reserves

Sapura Energy Nets $22.6M in Offshore Support Vessel Contracts

CNOOC Puts Into Production New Oil Field in South China Sea

Sunda Energy Starts Environmental Consultation for Chuditch-2 Well Drilling Plans

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com