Oil & Gas News

Rowan Announces Purchase of Two Modern Jack-Up Rigs

Rowan Companies plc ("Rowan" or the "Company") (NYSE: RDC) announces that it has concluded the purchase of two LeTourneau Super 116E jack-up rigs, the P-59 and P-60, which were both delivered new into service in 2013, in a public auction from a subsidiary of Petroleo Brasileiro S.A. ("Petrobras") for $38.5 million per unit.

As previously reported on May 11, 2017, Rowan was the high bidder in a Petrobras public auction with a bid price of $30 million per rig. While the high bid was not accepted by Petrobras, after negotiations, both parties agreed to the revised price. The Company intends to mobilize these modern jack-ups to the Middle East from their current location in Brazil in late first quarter 2018.

3 Rowan LeTourneauRig2LeTourneau Super 116E jack-up rig. Photo credit: LeTourneau

Tom Burke, President and Chief Executive Officer, commented, "We consider this purchase an opportunistic investment, made near a cyclical low, at a highly attractive price. Since mid-2015 we have divested five older jack-ups (Rowan Louisiana, Rowan Juneau, Rowan Alaska, Rowan Gorilla II and Rowan Gorilla III). The addition of these two modern rigs will help renew the Rowan fleet and increase the Company's future earnings capability. We are very familiar with the design and construction of these rigs. We are confident in our ability to integrate these jack-ups into our existing fleet to generate strong financial returns from this investment and deliver safe, efficient and reliable operations to our customers."

The Company also announced that it sold the Cecil Provine in November 2017 for scrap, and has cold-stacked the Gorilla IV following the conclusion of its latest contract.

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