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Offshore drilling consolidation - Ensco and Rowan in all stock mergerOffshore drilling consolidation - Ensco and Rowan in all stock merger

Consolidation is continuing in the rig owning sector with Ensco merging with Rowan Companies in an all stock deal.

Marcus Hand, Editor

October 9, 2018

2 Min Read
Kalyakan - stock.adobe.com

In a deal with an enterprise value in excess of $12bn Rowan shareholders will receive 2.215 Ensco shares for each Rowan share with Ensco and Rowan shareholders owning approximately 60.5% and 39.5% of the merged company.

Ensco president and ceo Carl Trowell, who will serve as executive chairman of the combined company, while Rowan president and ceo Tom Burke, who will serve as president and ceo.

Read: Transocean acquisition of Ocean Rig bets on ultra-deepwater market recovery

The merged company will have a fleet of 28 semi-submersible rigs and drillships, and 54 jack-up rigs serving more than 35 customers, including the largest national oil companies, international majors and independent exploration and production companies. The companies is aiming for $150m in synergy savings annually, with more than 75% in the first year.

Trowell said: “The combination of Ensco and Rowan will create an industry leader in offshore drilling across all water depths, with significant advantages to capitalize on future opportunities and better serve our customers.”

Burke added: “By merging our high-quality rig fleets and infrastructure covering the world’s most prolific offshore basins, we increase our scale while maintaining a shared focus on high-specification assets that will include ultra-deepwater drillships and versatile semisubmersibles, as well as harsh environment and modern jack-ups.”

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The merged company will operate in the Gulf of Mexico, Brazil, West Africa, North Sea, Mediterranean, Middle East, Southeast Asia and Australia.

Saudi Aramco, Rowan’s joint venture partner in ARO Drilling has given its approval for the merger. “Ensco shareholders will uniquely benefit from Rowan’s strategic joint venture with Saudi Aramco, ARO Drilling,” Trowell said.

ARO Drilling has a 20-rig newbuild programme.

Read more about:

Saudi Aramco

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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