Malaysian group to merge with Norway’s Seadrill, makes the World’s largest rig unit.

SapuraKencana Petroleum Bhd., a Malaysian oil and gas service provider, plans to acquire rigs owned by Norway’s SeaDrill Ltd. for an enterprise value of $2.9 billion, as part of plans to merge the companies’ rig businesses, reports the Wall Street Journal.

According to the Financial Times, the deal will make SapuraKencana the world’s largest operator of tender rigs, which are semi-submersible barges that support the main drilling rig in exploration fields. They are typically rented from a handful of providers by big energy exploration companies.

A report from WJ also states that the combined business under SapuraKencana will own 16 rigs mostly deployed in Southeast Asian waters with another five currently under construction.
SapuraKencana and Seadrill said in a joint statement filed to the Malaysian stock exchange Monday. The rigs businesses had an order backlog worth $1.55 billion at the end of October, the companies said.

“One of the main objectives of the transaction is to develop a strong leading player in the Far East market,” the statement said, adding that Seadrill will receive a minimum of $350 million worth of new shares in SapuraKencana.

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