GLOBAL MARINE TO FORM JOINT VENTURE WITH TRANSOCEAN A.S.
HOUSTON, June 7 /PRNewswire/ -- Global Marine Inc. (NYSE: GLM) announced today that it has entered into a letter of intent with Transocean Drilling A.S. to form a joint venture covering the ownership, operation and marketing of four offshore drilling units. Under the terms of the letter in intent, Global Marine will acquire a 50 percent interest in three Transocean jackup drilling rigs in exchange for a 50 percent interest in a Global Marine heavy-weather jackup drilling rig, the Glomar Moray Firth, and US$8.5 million in cash. The three Transocean rigs, know as the Transocean 5, 6, and 7 are all Marathon LeTourneau 116-C jackups capable of drilling in 300 foot water depths. The letter of intent contemplates that Global Marine will assume full marketing and operational responsibility for the three Transocean jackups, and that Transocean will assume the same responsibilities for the Glomar Moray Firth. The letter of intent also contemplates further strategic alliances between the two companies to provide integrated drilling services to the industry. Global Marine will immediately undertake to mobilize two of the Transocean jackups from the North Sea to the U.S. Gulf of Mexico, where drilling activity and dayrates have been increasing steadily during the past several months. Global Marine's Chairman and Chief Executive Officer, C. Russell Luigs, commented "We are pleased with the relationship we have established with Transocean and look forward to quickly concluding our joint venture arrangement. The transaction recognizes the marketing strengths of the two companies in their respective markets and furthers Global's strategic goal of increasing its market presence in high- quality, deep-water cantilevered jackups which remain the drilling tool of choice throughout the world." The agreement provides further that both Global Marine and Transocean will have the right to purchase and sell, respectively, a 50 percent interest in the rigs covered by the letter of intent, with Global Marine making an US$8.5 million balancing payment to Transocean. The foregoing purchase and sale option must be exercised within 90 days and is subject to the consent and approval of the parties' respective lenders and regulatory agencies. Transocean is a major Norwegian drilling contractor, operating six mobile offshore rigs and controlling 30 to 40 percent of the platform drilling market in Norway. The company is also the world's fourth largest drilling fluids company, provides engineering and construction services, and offers oil well intervention services through its coiled tubing and nitrogen operations. Houston-based Global Marine is one the industry's largest international offshore drilling contractors, offers turnkey drilling services, and has interests in oil and gas production. -0- 6/7/93 /CONTACT: David A. Herasimchuk of Global Marine, 713-596-5809/ (GLM)
CO: Global Marine Inc.; Transocean Drilling A.S. ST: Texas IN: OIL SU: JVN
TS-LR -- NY022 -- 5868 06/07/93 09:18 EDT
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|Date:||Jun 7, 1993|
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