Pride Selling Latin American Division to GP Investments Ltd.
Pride International, Inc. redirects its focus on offshore drilling by entering a deal to sell its two Latin American business units to GP Investments Ltd., Latin America’s top private equity firm. GP Investments will pay $1.0 billion for Pride’s Latin American land-based drilling and workover business unit and its E&P Services division.
The land-based unit consists of 73 land drilling rigs, 135 workover rigs and two lake drilling barges, while the E&P Services division comprises myriad well services to complete, maintain and enhance oil and gas well production. Subject to customary closing conditions, but expected to close by the end of the third quarter of 2007, the sale constitutes operations in eight Latin American countries.
“The sale of our Latin America land-based business segments represent a significant milestone in the transition of our company and further supports our stated strategic direction,” says Louis A. Raspino, president and CEO or Pride International. “With the close of the transaction, contract drilling operations of Pride International will be almost exclusively offshore, with an increasing focus on deepwater and other high specification assets.”
Once the sale is complete, Pride’s land-based drilling and workover operations will consist of seven rigs in Chad, Kazakhstan and Pakistan. The company stated that the proceeds from the sale might be used for funding the two ultra-deepwater drillships that are in construction for Pride, as well as other strategic and growth opportunities.