HOUSTON, Jan. 5, 2018 /PRNewswire/ -- Rowan Companies
plc ("Rowan" or the "Company") (NYSE: RDC) announced today that it
has concluded the purchase of two LeTourneau Super 116E jack-up rigs, the P-59 and
P-60, which were both delivered new into service in 2013, in a
public auction from a subsidiary of Petroleo Brasileiro S.A.
("Petrobras") for $38.5 million per
unit. As previously reported on May 11,
2017, Rowan was the high bidder in a Petrobras public
auction with a bid price of $30
million per rig. While the high bid was not accepted by
Petrobras, after negotiations, both parties agreed to the revised
price. The Company intends to mobilize these modern jack-ups
to the Middle East from their
current location in Brazil in late
first quarter 2018.
Tom Burke, President and Chief
Executive Officer, commented, "We consider this purchase an
opportunistic investment, made near a cyclical low, at a highly
attractive price. Since mid-2015 we have divested five older
jack-ups (Rowan Louisiana, Rowan
Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla
III). The addition of these two modern rigs will help renew the
Rowan fleet and increase the Company's future earnings capability.
We are very familiar with the design and construction of these
rigs. We are confident in our ability to integrate these jack-ups
into our existing fleet to generate strong financial returns from
this investment and deliver safe, efficient and reliable operations
to our customers."
The Company also announced that it sold the Cecil Provine in
November 2017 for scrap, and has
cold-stacked the Gorilla IV following the conclusion of its latest
contract.
Rowan is a global provider of contract drilling services with a
fleet of 27 mobile offshore drilling units, composed of 23
self-elevating jack-up rigs and four ultra-deepwater
drillships. The Company's fleet operates worldwide, including
the United States Gulf of Mexico, the United Kingdom and Norwegian sectors of the
North Sea, the Middle East, and
Trinidad. Additionally, the Company is a 50/50 partner in a
joint venture with Saudi Aramco, entitled ARO Drilling, that owns a
fleet of five self-elevating jack-up rigs that operate in the
Arabian Gulf. The Company's Class A Ordinary Shares are traded on
the New York Stock Exchange under the symbol "RDC." For more
information on the Company, please visit www.rowan.com.
Statements herein that are not historical facts are forward
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, without limitation,
statements as the anticipated use and financial returns associated
with the rigs purchased from Petrobras. These forward-looking
statements are based on our current expectations and are subject to
numerous risks, assumptions, trends and uncertainties that could
cause actual results to differ materially from those indicated by
the forward-looking statements. Among the factors that could cause
actual results to differ materially include oil and natural gas
prices and the impact of the economic climate; changes in the
offshore drilling market, including fluctuations in supply and
demand; variable levels of drilling activity and expenditures in
the energy industry; changes in day rates; ability to secure future
drilling contracts; cancellation, early termination or
renegotiation by our customers of drilling contracts; customer
credit and risk of customer bankruptcy; risks associated with fixed
cost drilling operations; unplanned downtime; risks related to our
joint venture with Saudi Aramco, including the timing and amount of
future distributions from the joint venture or contributions to the
joint venture; cost overruns or delays in transportation of
drilling units; cost overruns or delays in maintenance, repairs, or
other rig projects; operating hazards and equipment failure; risks
of collision and damage; casualty losses and limitations on
insurance coverage; weather conditions in the Company's operating
areas; increasing costs of compliance with regulations; changes in
tax laws and interpretations by taxing authorities; hostilities,
terrorism, and piracy; impairments; cyber incidents; the outcomes
of disputes, including tax disputes and legal proceedings; and
other risks disclosed in the Company's filings with the U.S.
Securities and Exchange Commission. Each forward-looking statement
speaks only as of the date hereof, and the Company expressly
disclaims any obligation to update or revise any forward-looking
statements, except as required by law.
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SOURCE Rowan Companies plc