Songa Offshore SE has entered into an agreement with Opus Offshore Group ("Opus Offshore") for the sale of the Songa Mercur and Songa Venus (collectively the "Rigs") and establishment of a strategic joint venture drilling management company, (the "Songa-Opus JV") (the "Transaction").

Opus Offshore will acquire 100% of the Rigs, which will be operated by the Songa-Opus JV. Combining the resources of Songa Offshore and Opus Offshore in Asia, the Songa-Opus JV will provide a full suite of services in relation to international drilling operations. The current international operations of Songa Offshore, primarily related to the Rigs in S.E. Asia, will be transferred to the Songa-Opus JV. In addition to the Songa Mercur and Songa Venus, the Songa-Opus JV will operate additional assets including Opus Offshore's Tiger series of drillships currently under construction or on order with scheduled delivery between 2014 and 2017.

The purchase price for the Songa Mercur and the Songa Venus is USD 200 million, effective as of 1 January 2014. Combined estimated cash flows of USD 41.6 million accumulated by the Rigs between 1 January 2014 and 31 May 2014, is to be reimbursed to Opus Offshore through the settlement mechanism. Total proceeds for Songa Offshore from the Transaction will amount to up to USD 168.4 million, including:

Tags: Songa Offshore ASA