Posted on April 26, 2023
Transocean Ltd. (NYSE: RIG) (“Transocean”) and Eneti Inc. (NYSE: NETI) (“Eneti”) announced today the execution of a non-binding memorandum of understanding through their respective subsidiary companies indicating their intention to form a joint venture company that will engage in offshore wind foundation installation activities.
The joint venture would benefit from the best-in-class experience of both partners across their respective core businesses providing offshore services. Transocean’s vast experience operating a global fleet of dynamically positioned offshore drilling rigs to a diverse base of energy-producing customers on long-term contracts will be combined with Eneti’s experience, through Seajacks International Ltd., installing more than 500 wind turbine foundation components and executing “Transport and Installation contracts” at wind farms including Akita & Noshiro (Japan), Meerwind (Germany), Veja Mate (Germany), and Moray East (Scotland).
The formation of the joint venture is subject to the successful negotiation and execution of definitive agreements. The parties expect the definitive agreements would provide that (i) the operations of the joint venture would be performed initially by personnel from both Eneti and Transocean and (ii) the joint venture, with technical assistance from the joint venture partners, would be responsible for converting up to two fit for purpose floating vessels into offshore wind foundation installation vessels. Upgrades to the vessels would include a 5200t crane and are expected to provide them with the capability to carry up to six 3,500t monopile foundations with 12m diameter and possess certain other environmentally responsible and efficiency-enhancing operating features.
Eneti and Transocean have the right, but not the obligation, to invest in the joint venture along with other financial partners.
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship and holds a noncontrolling ownership interest in a company that is constructing one ultra-deepwater drillship.