Tender Rig Specialists to Merge

Singapore-based tender assist rig specialist Energy Drilling and Houston-headquartered Atlantica Tender Drilling (formerly BassDrill) are planning to merge into what is expected to become the second largest tender drilling contractor.

Tender rig pair signed a letter of intent (LoI) for the merger.

"The combined company will be the second largest tender drilling contractor, with five rigs representing 17% of the tender drilling market," said a press statement.

 The fleet will be the most modern among competitors, with an average age of 5 years. Operations are backed by solid backlog against Petrobras and Total and a  strong  track record operating for Thai national oil company PTTEP. For the year ended 2018, the combined company  had revenues of USD 211 million and an EBITDA of USD 114 million.

“This merger represents the starting point for an attractive growth strategy targeting to consolidate and expand in the drilling industry. Atlantica and Energy Drilling has the right assets, backlog and balance sheet to be a forward leaning M&A partner in the industry”, says Kerry Kunz, CEO of Atlantica.

“The two companies have performed drilling operations in multiple geographical locations for top clients such as Petrobras, Total and PTTEP. Our goal is to grow our combined company to provide our clients with  cost effective, productive and safe drilling operations”, says Marcus Chew, CEO of Energy Drilling.

An implementation committee with representatives  from both companies will commence  the detailed  planning and structuring of the contemplated transaction as well as conclude management structure and  operational presence going forward.  

When  all  conditions  in  the  LoI are  met,  including refinancing  of  existing  credit  facilities, satisfactory due diligence and shareholder approvals, the transaction is expected to be completed early third quarter 2019.  

The contemplated transaction is unanimously supported and recommended by the board of directors of  the  two  companies.  The  contemplated  transaction  has  also  received  support  from  the  majority  of  shareholders in Atlantica and Energy Drilling.  

Atlantica is a leading owner and operator of semi‐submersible tender drilling rigs operating in the Atlantic  Ocean. Energy Drilling is a leading owner and operator of barge  tender drilling  rigs operating offshore  South‐East Asia and has a newbuild semi‐submersible tender drilling rig ready for delivery.

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