GDI completes purchase of three jack-up rigs and related JV interest from Seadrill

Gulf Drilling International (GDI), a subsidiary of Gulf International Services (GIS), has completed the purchase of Seadrill jack-up rig fleet and related joint venture (JV) interest in Qatar. As a result of the transaction, Gulfdrill became a wholly owned subsidiary of GDI. This follows after the extraordinary general assembly meeting of GIS wherein shareholders accorded their approval for the multi-million-dollar deal.

GDI had struck a $338mn deal with the US-based Seadrill Jack Up Holding to acquire the latter’s 50% stake in the joint venture Gulfdrill and its three jack-up rigs. The total consideration for the acquisition of the three jack-up rigs (of Gulfdrill) is $325mn and $13mn for the acquisition of the joint venture interest.

With this transaction, GDI contracted offshore fleet in Qatar has reached 10 rigs, further consolidating its position as the largest jack-up operator in Qatar. On top of seven operating onshore rigs in Qatar, this transaction brings GDI total rigs to 17. Through this transaction, combined revenues and profitability of GDI are expected to improve on the back of operational synergies and elimination of bare boat charges.

The closing of this transaction builds on the latest strategic initiatives taken by GIS – the restructuring of GDI’s debts for a longer tenure and with competitive rates as well as the extension of Gulfdrill jack-up rig contracts for another term expiring by early 2026. The three rigs – West Castor, West Telesto and West Tucana will be acquired by the GDI special purpose vehicle (SPV) Gulf Jackup SPC, a wholly owned subsidiary of GDI. The contracts for the three rigs will be moved to the buyer SPV upon completion of the transaction.