Ensco, PLC announced the completion of its acquisition of Pride International, with the sale creating the world’s second largest offshore driller. Under terms of the agreement—with exceptions for certain UK residents as well as dissenting stockholders—Pride stockholders will receive 0.4778 share of newly issued Ensco stock plus $15.60 for each share of Pride common stock.
The expanded 76-rig Ensco fleet now consists of 7 ultradeepwater drillships, 13 dynamically positioned semis, 7 moored semis, and 49 premium jackups. The deal also gives Ensco a substantial presence in Brazil and West Africa, two high-growth areas where it previously was not well established. The Pride fleet has been renamed, with the exception of three jackups: the Pride Pennsylvania, Pride Hawaii, and Pride Wisconsin. These units will likely be sold at some point. In related news, Ensco newbuild drillship ENSCO DS-4, the former Deep Ocean Clarion, has departed the U.S. Gulf of Mexico for Brazil, where it will begin a 5-year contract with BP. The rig was originally slated to mobilize to Libya for BP, but civil unrest there prompted the change. It is expected that newbuild drillship ENSCO DS-5 (formerly Deep Ocean Mendocino), now undergoing acceptance testing, will begin its 5-year contract with Petrobras America in July in the Cascade/Chinook fields.