Hercules Offshore Sells Jackup at 94% Loss

Struggling drilling contractor Hercules Offshore Inc. will sell the Hercules 267 (250’ ILC) to an undisclosed buyer for $3.16 million, a 94 percent decrease from the $55 million the company spent to buy the rig in 2013.

The Houston-based company originally acquired the rig, formerly called the Ben Avon, in March 2013 from a KCA Deutag subsidiary. The sale is expected to close imminently, Hercules said in a July 11 press statement.

Hercules has taken several hits during the global oil price downturn, which prompted oil and gas companies to scale back spending and drilling plans amid an oversupplied rig market. In May, Hercules said it would file for prepackaged Chapter 11 bankruptcy a second time, six months after emerging from bankruptcy protection. Last month, the company reported it would lay off 60 employees at its Houston headquarters.

The rig sale marks the second one this year for Hercules. Last month, Maersk Drilling acquired a harsh environment jackup originally built for Hercules, the Hercules Highlander (400’ ILC), for approximately $190 million.

Evercore-ISI analyst James West told Rigzone the global shallow water market continues to weaken globally, particularly in Asia. The Gulf of Mexico shallow water market has been weak for several years. Evercore-ISI does expect to see some stabilization in 2017.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Fabrication Project Superintendent
Expertise: Fabrication|Project Management
Location: Houma, LA
Senior Vice President, Operations
Expertise: Executive|Operations Management
Location: Houston, TX
Sr. Contract Specialist
Expertise: Contracts Administration|Contracts Engineer|Legal
Location: Chesterfield, MO
search for more jobs

Brent Crude Oil : $52.72/BBL 3.31%
Light Crude Oil : $48.51/BBL 3.01%
Natural Gas : $2.89/MMBtu 1.36%
Updated in last 24 hours