Hercules buys three rigs from Transocean

Hercules Offshore and Transocean have entered into a definitive agreement whereby Hercules will purchase three of Transocean's Gulf of Mexico jackup drilling rigs and related equipment for US$320 million.

The sale of GSF Adriatic III, GSF High Island I and GSF High Island VIII mark Transocean's exit from operations in the shallow-water area of the Gulf of Mexico. The sales will be consummated at the conclusion of each rig's current contract commitments, subject to regulatory approval. Hercules Offshore is already negotiating international contracts for GSF High Island I and GSF High Island VIII, and plans to market GSF Adriatic III internationally in the future. The GSF Adriatic III is a Marathon LeTourneau 116C design jackup with a water depth capability of 350 feet (106.7 m). Its contract with El Paso expires Feb. 19. GSF High Island I and VIII were built in 1979 and 1981, respectively, and are Marathon LeTourneau 82-SDC design jackups with a water depth capability of up to 250 feet (76 m). GSF High Island VIII has a contract with BHP Billiton, which expires on April 30.

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