Transocean Sedco Forex Inc. Officially a Cayman Islands corporation, it operates out of Houston, Texas, with more than 16, employees located around the globe. Transocean's drilling rigs and work crews are contracted by petroleum companies at a day rate, over the course of long-term and short-term contracts.
Although the company offers inland drilling barges and shallow water drilling rigs, Transocean is especially active in the deepwater and harsh environment drilling segment, offering semisubmersible rigs as well as massive drillships that have drilled to record depths in the range of 10, feet.
Transocean's mobile rigs cover all of the world's major offshore drilling markets, including the Gulf of Mexico, the North Sea, Mediterranean Sea, and the waters off eastern Canada, Brazil, West and South Africa, the Middle East, Asia, and India. Transocean is composed of a number of drilling operations that were merged, especially during the late s when the offshore drilling industry as a whole began to consolidate. The surviving corporate structure belongs to The Offshore Company, incorporated in Delaware in It was created when the pipeline company Southern Natural Gas Co.
SNG purchased DeLong-McDermott, which was a contract drilling joint venture of DeLong Engineering and J. Ray McDermott's marine construction business. A year later, Offshore established the first jackup drilling rig in the Gulf of Mexico.
Oil and gas exploration then began to move farther offshore and to more remote areas of the world. Offshore was also one of the earliest companies in the s to operate jackups in the inhospitable environment of the North Sea, which would develop into one of the world's most significant sources of oil. In Offshore went public. Ten years later it expanded its range of operations to southeast Asia, where it drilled its first deepwater well.
Inthe company became a wholly owned subsidiary of SNG, which had greatly increased its emphasis on offshore drilling and exploration operations. As a result, Offshore developed one of the largest U.
When SNG changed its name to Sonat inThe Offshore Company became known as Sonat Offshore Drilling Inc. During the s new "floaters" were developed to accomplish deepwater drilling.
Semisubmersible rigs were partially submerged below water and usually moored to the ocean floor for stability. Drill ships, able to reach depths of 3, feet and particularly useful in exploring remote areas, were also introduced as a cost-effective option during this period. By the late s a large number of companies began to build and operate floaters, leading to a highly fragmented industry. Many service companies went bankrupt or were swallowed up by stronger rivals.
During this decade-long lean period, offshore drilling rigs in operation declined precipitously, from more than 1, in the early s to around In this way the parent company hoped to transform itself from a diversified pipeline company into an exploration and production company.
The newly independent Sonat Offshore, as a result of the offering, had a clean balance sheet and money in the bank, and was well positioned to weather an ensuing decline in gas prices. Moreover, the company's emphasis on deepwater oil drilling also would prove to be a wise strategy. It was recognized that the most desirable energy plays that remained in the world resided under great depths of ocean.
Although the technology existed to tap these deposits, only until oil prices reached a certain level would it become economical for a company like Sonat Offshore to invest in a new generation of drill ships. The cost of such rigs was so high that only large companies were able to afford them. There were other reasons why consolidation among offshore drilling contractors became desirable in the mids. It would likely bring pricing discipline to a highly fragmented s&p 500 options symbol, in which the top three companies served just 27 percent of the market.
A small drop in the price of gas or oil could result in a major decrease in day long put option maximum loss. Clearly, companies could not expect to achieve long-term health by simply building more rigs to expand their business.
Growth had to come by acquiring existing rigs, to gain some leverage with producers. With fewer but larger contractors in the industry, the addition of new rigs would hopefully become more of a rational and systematic process. In addition, larger players could operate more efficiently around the world, with rigs strategically positioned to save on moving charges while building a more diversified customer base.
Transocean ASA had been created in the mids when a Norwegian whaling company entered the sedco forex drilling company business, then later consolidated with a number of other companies. Because of its large North Sea operations, Transocean ASA was considered a prize catch, one that would automatically make the buyer into the unquestioned leader in deepwater drilling. The deal became effective in Septemberand Sonat Offshore changed its name to Transocean Offshore.
Rising oil prices, in the meantime, benefited offshore drilling contractors. The chairman of Transocean Offshore, J.
Michael Talbot, concluded that the trend could continue for as long as 20 years and made a commitment to expand forex conquered high probability systems and strategies for active traders (wiley trading) the company's fleet. With long-term contracts with oil companies in hand, Transocean Offshore began the development of a new generation of massive drill ships, featuring the latest in technological advances, and designed to drill to 10, feet, as opposed to the 3,foot capacity of the drill ships built in the mids.
The first ship, the Discoverer Enterprise, would be feet in length with a derrick that stood feet high. It could sleep and carrybarrels of oil and gas. Because it featured two drilling systems in one derrick, the ship could reduce the time to drill a development well sedco forex drilling company up to 40 percent and could drill and lay pipeline without the need of a pipelay barge.
Moreover, the Enterprise would essentially serve as a floating research and development project for two additional london stock exchange main market statistics ships.
In April Transocean Offshore was approached by Schlumberger Ltd. Paris-based Schlumberger had been involved in offshore drilling for many years. The Forex company was created in France in to engage in land drilling in North Africa and the Middle East, as well as France. Forex teamed with Languedocienne to create a company called Neptune to engage in offshore drilling.
Forex had gained complete control of Neptune bywhen Schlumberger bought the remaining interest in Forex. The Southeastern Drilling Company, Sedco, was an American firm, founded in by future Texas governor Bill Clements to drill in shallow marsh water.
In the s it began to provide drilling services in deeper water. Schlumberger acquired the company in and a year later combined it with Forex to is binary options legal in australia Sedco Forex Drilling. The proposed Transocean Offshore and Sedco Forex merger was announced in July Schlumberger shareholders would receive roughly one share in the new company, Transocean Sedco Forex, for every five Schlumberger shares held.
In the end, Schlumberger shareholders would control approximately 52 percent of the new company. Both Schlumberger and Transocean would receive five seats on the board, while Schlumberger's vice-chairman would serve as the chairman of the company and Transocean's Talbert would become president and CEO.
Its fleet included 46 semisubmersibles forex trading strategy reviews seven deepwater drill ships, with others under construction. It was deutsche bank sells retail forex business expected that the deal would create added pressure on other contractors to merge, as much needed consolidation in the industry continued to gain momentum.
The company's fortunes suffered a downturn in and although it had made strides in redressing its situation, its debt load remained high and management decided that the time was ripe to merge with Transocean Sedco Forex. With offshore rigs, inland barges, and supporting assets, the combined company easily outpaced its closest rival, Pride International, with just 59 offshore rigs, of which 45 were shallow-water jackups.
Moreover, Transocean provided almost half of the world's ultra-deep drilling ships. In effect, Transocean Sedco Forex was able to expand its global fleet with the most extensive range of offshore rigs and markets, while gaining a presence in the shallow and inland waters of the Gulf of Mexico, where it previously had no fleet.
Overall, there was very little overlap in rigs.
Because the company had changed its origin of incorporation to the Cayman Islands in lateit was not allowed by law to operate vessels in U. Clearly, Transocean Sedco Forex had taken the lead in the consolidation of offshore drilling contractors.
Everyone agreed on the need for consolidation, but with so many operators of similar size it was difficult for executives to sort out who was to be the acquirer and who was to be acquired. In a number of contractors merged, but no one came close to rivaling Transocean Sedco Forex in size, especially in the deepwater and harsh environment offshore drilling markets.
Although management's first priority was to pay down debt, there was every reason to believe that the company would continue to snap up desirable firms in an effort to grow even larger.
Transocean Offshore Deepwater Drilling Inc. Diamond Offshore Drilling, Inc. International Directory of Company HistoriesVol. As consumers, we often take for granted all the hard work that goes into building a great company.
As business owners, we marvel at how companies have impacted our lives like AppleMicrosoftand even Hasbro. Finally, we can read about how these great companies came about with company-histories. Home Search Submit Random. New York Ticker Symbol: Our mission is to be the premier offshore drilling company providing worldwide rig-based, well-construction services to our customers through the integration of motivated people, quality equipment and innovative technology, with a particular focus on technically demanding environments.
Forex is founded in France. Southeastern Drilling Company is founded. The Offshore Company is incorporated. The Offshore Company goes public. The Offshore Company becomes a wholly owned subsidiary of Sonat Inc.
Sonat Offshore is spun off. Sonat Offshore acquires Transocean ASA to become Transocean Offshore. Transocean Offshore merges with Sedco Forex Drilling to become Transocean Sedco Forex Inc. Corporate Lineage Dating Back to Transocean is composed of a number of drilling operations that were merged, especially during the late s when the offshore drilling industry as a whole began to consolidate.
Consolidation Among Offshore Drilling Contractors in the s There were other reasons why consolidation among offshore drilling contractors became desirable in the mids. Merger of Transocean and Sedco Forex in The proposed Transocean Offshore and Sedco Forex merger was announced in July Antosh, Nelson, "Sonat, Norwegian Firm Strike Deal," Houston Chronicle, May 3,p. Byrnes, Nanette, "Seven Come Eleven," Financial World, March 15,p.
Transocean Sedco Forex
DeLuca, Marshall, and William Furlow, "Driller Consolidation Begins, But Will It Continue? Mack, Toni, "Learning from Experience," Forbes, December 2,pp. Tejada, Carloa, "Schlumberger's Sedco and Transocean to Merge," Wall Street Journal, July 13,p.
Wetuski, Jodi, "Two Down Company Histories As consumers, we often take for granted all the hard work that goes into building a great company.
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