LONDON — Oil-rig company Ensco PLC has agreed to buy U.S. rival Pride International in a $7.3 billion deal that will create the world’s second-largest offshore-drilling company.
The deal provided a boost Monday for drilling-industry shares after several months of political and public pressure in the wake of the Gulf of Mexico oil spill in April.
The combined company will be valued at $16 billion and have a total of 74 rigs, including 21 ultra-deep-water and deep-water platforms, in key locations around the world — placing it behind Switzerland’s Transocean, the owner of BP’s ill-fated Deepwater Horizon rig in the gulf and the world’s largest driller.
“The combination is an ideal strategic fit, as our rig types, markets, customers and expertise complement each other with minimal overlap,” Ensco chief executive Dan Rabun said.
Houston-based Pride brings expertise building and operating ultra-deep-water semi-submersibles and drill ships, with customers in the fast-growing markets of Brazil and West Africa, to the table.
London-based Ensco, meanwhile, is a leading provider of rigs in the North Sea, Southeast Asia, North America and the Middle East.
Pride CEO Louis Raspino has said bigger drilling companies would be better able to afford the cost of new regulations and retain top employees in the wake of the BP oil spill.
The U.S. has imposed new requirements for deep-water-drilling permits, and gulf drilling activity remains limited, though a moratorium has been lifted.
