HOUSTON, Oct. 28 /PRNewswire-FirstCall/ -- Northern Offshore, Ltd.
(Oslo Bors: NOF.OL) today announced that it had advised Transocean, Inc.
(NYSE: RIG) that two wholly owned subsidiaries of Northern Offshore are
terminating their previously announced agreements to acquire two North Sea
semisubmersible drilling rigs from affiliates of Transocean, Inc. The
acquisition of these rigs by Northern Offshore affiliates is contingent upon
its ability to obtain Northern Offshore's lender consents to the acquisition
and related financing. Northern Offshore has been unable to obtain the consent
of its lenders on terms acceptable to Northern Offshore and has advised
Transocean of this development.
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While Northern Offshore and Transocean continue to discuss alternative
structures which could result in Northern Offshore's acquisition of one or
both of these rigs, there is no assurance that these discussions will lead to
an agreement which will permit Northern Offshore to acquire these rigs on
acceptable terms.
Marion Woolie, Northern Offshore President and CEO, said 'We are extremely
disappointed that Northern Offshore affiliates will not be able to conclude
this acquisition given the recent uncertainties in the global credit markets
and the addition of the related financial obligations for these two
semisubmersible rigs.'
Northern Offshore, Ltd. is a Bermuda holding company which operates
offshore oil and gas production and drilling vessels deployed around the
world. The Company's recently updated fleet consists of one floating
production facility and five drilling units (a drillship, a semisubmersible
and three jackup drilling rigs). The Northern Offshore fleet operates in
various markets including the North Sea, the Indian Ocean, offshore Russia and
Southeast Asia. More information on Northern Offshore, Ltd. may be found by
visiting the Company's website at http://www.northernoffshorelimited.com.
For further information please contact: Michael Dawson
713-739-7686
SOURCE Northern Offshore, Ltd.
