Weekly Offshore Rig Review: The Merged Fleet

With the recent announcement of the proposed merger of Transocean and GlobalSantaFe, we wanted to take a brief look at these two leading offshore drilling contractors' fleets and what their combined fleet will look like. In this review, you'll find a breakdown of each company's fleet, along with the stats on the combined fleet. For simplicity's sake, we will only be looking at the jackups, semisubs, and drillships, which constitute the majority of the rig fleet.

Transocean
Transocean's fleet, which is outlined in the table below, is the most deepwater focused fleet in the world. With a total of 53 semisubs and drillships, Transocean has by far the largest fleet of floating rigs, surpassing 2nd-place Diamond Offshore by 22 rigs.

With the addition of GlobalSantaFe's 14 floating rigs (tied for 3rd largest with Noble and Pride), the combined fleet would have 67 semis and drillships, making it well more than twice as large as the Diamond floating rig fleet. In fact, you would have to combine the floating rig fleets of Diamond, Noble, Pride, and Dolphin to reach a fleet of comparable size.

Looking specifically at deepwater drillships rated for at least 4,000' water depths, Transocean is clearly the dominant player with 12 rigs out of a market of 26, meaning that it already controls 46% of the fleet. With the addition of GSF's three deepwater drillships (which is tied with Noble for the 2nd-largest fleet of deepwater drillships), the combined company would own 15 deepwater drillships, controlling 58% of the fleet.

Transocean Offshore Rig Fleet
Jackups, Semisubs, Drillships
As of July 26, 2007
Rig Type Total Rigs Contracted Rigs Avg Day Rate Total Day Rate
Drillship 4,000ft+ 12 11 $265,673 $2,922,400
Jackup < 300ft 3 3 $104,200 $312,600
Jackup 300ft+ 21 21 $119,543 $2,510,400
Semisub < 4,000ft 25 24 $241,221 $5,789,300
Semisub 4,000ft+ 16 15 $270,127 $4,051,900
Total 77 74 $15,586,600

GlobalSantaFe
While Transocean's rig fleet focuses on the deepwater drillships and semis, the GlobalSantaFe fleet complements it nicely with its fleet of 29 jackups rated for 300'+ water depths. The total fleet of 43 jackups belonging to GSF make it the 2nd-largest jackup fleet in the world, just one rig less thatn ENSCO's 44 jackups. However, when looking at just high-specification jackups, GlobalSantaFe has the world's largest fleet with its 29 300'+WD jackups, 3 more than Noble.

After adding Transocean's 21 300'+ jackups to the GSF fleet, the combined fleet would have a total of 50 jackups capable of drilling in 300'+ water depths. That will be nearly double the number of 300'+ jackups in Noble's fleet, which is the second-largest fleet of these rigs.

In the table below, you can see the breakdown of the GSF fleet and its tendency towards high-spec jackups.

GlobalSantaFe Offshore Rig Fleet
Jackups, Semisubs, Drillships
As of July 26, 2007
Rig Type Total Rigs Contracted Rigs Avg Day Rate Total Day Rate
Drillship 4,000ft+ 3 3 $307,000 $921,000
Jackup < 300ft 14 13 $127,231 $1,654,000
Jackup 300ft+ 29 29 $160,071 $4,642,071
Semisub < 4,000ft 8 8 $269,250 $2,154,000
Semisub 4,000ft+ 3 3 $245,333 $736,000
Total 57 56 $10,107,071

Another interesting point worth noting, which can be seen in the table above, is that GSF is currently earning higher day rates across each rig type, with the exception of deepwater semis.

Combined
Not only would the merging of these two fleets create the largest offshore rig fleet in the world, but it would also create the most broadly high-specification rig fleet in the world. With the most deepwater drillships, the most deepwater semisubs, and the most 300-foot-plus jackups, the Transocean-GSF fleet would have the largest number of rigs in each of the highest-earning categories of the offshore rig fleet.

Transocean & GlobalSantaFe Combined Offshore Rig Fleet
Jackups, Semisubs, Drillships
As of July 26, 2007
Rig Type Total Rigs Contracted Rigs Avg Day Rate Total Day Rate
Drillship 4,000ft+ 15 14 $274,529 $3,843,400
Jackup < 300ft 17 16 $122,913 $1,966,600
Jackup 300ft+ 50 50 $142,702 $7,135,102
Semisub < 4,000ft 33 32 $248,228 $7,943,300
Semisub 4,000ft+ 19 18 $265,994 $4,787,900
Total 134 130 $25,676,302

Versus Noble, ENSCO, and Diamond
In order to help put the size of the combined Transocean-GSF fleet in perspective, let's take a look at what would be necessary among the other offshore drillers in order to create a fleet of comparable size in the key jackup, semisub, and drillship segments. In order to accomplish this feat, you would need to combine the next three largest offshore drilling fleets:

  • Noble with its large fleet of high-spec jackups and sizable fleet of floating rigs
  • ENSCO with its large fleet of jackups
  • Diamond Offshore with its predominantly floating rig fleet

The table below outlines the size of the fleet that would be created by combining these three companies' rig fleets. The resultant fleet would be more heavily jackup-oriented than the Transocean-GSF fleet. And no matter what companies you combined, you could not catch up with the Transocean-GSF drillship fleet, since they already own the majority of 4,000'+ drillships in the world. But, the theoretical combination of the Noble, ENSCO, and Diamond fleets would well rival the Transocean-GSF fleet in most ways.

Noble, ENSCO, and Diamond Combined Offshore Rig Fleet
Jackups, Semisubs, Drillships
As of July 26, 2007
Rig Type Total Rigs Contracted Rigs Avg Day Rate Total Day Rate
Drillship 4,000ft+ 4 4 $140,750 $563,000
Jackup < 300ft 38 36 $127,571 $4,592,571
Jackup 300ft+ 60 57 $132,890 $7,574,750
Semisub < 4,000ft 23 20 $209,225 $4,184,500
Semisub 4,000ft+ 19 18 $265,138 $4,772,488
Total 144 135 $21,687,310

As is clearly illustrated by the fleet statistics provided above, the merger of Transocean and GlobalSantaFe would create a truly behemoth offshore drilling fleet that dominates in every key subsegment of the worldwide fleet.

For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit www.riglogix.com.

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