Friday, March 27, 2009

"PetroMena sells PetroRig I for $450m"

Offshore247:
"Norwegian listed drilling outfit PetroMena says it has to sell its deep water semi-submersible rig PetroRig I for $450m.
PetroMena did not reveal the indentity of the buyer, except that it was an international player."


PetroMena was offered 640 million for the same rig in last August, that is almost 200 million or 42% more than the new offer is worth. Management doesn't get much worse than this.
So who is the buyer? Diamond Offshore is a likely candidate as DO's President and CEO Larry Dickerson told Bloomberg earlier this week that they are interested in buying assets from distressed companies. The Indians are another candidate, but my bet is on DO. The price to be paid is very low and the buyer(whoever that is) is getting a real bargain.

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