Norwegian drilling rig operator Deep Value Driller has agreed to sell its seventh-generation drilling vessel, the Deep Value Driller, built in 2014, to Eldorado Drilling for $300 million.
It is worth noting that Deep Value Driller had originally planned to sell the “Deep Value Driller” to Italian offshore giant Saipem, and both parties had reached an agreement. However, the original transaction was canceled due to a higher bid from Eldorado.
Earlier this month, Deep Value Driller planned to sell the aforementioned drilling vessel to Saipem for approximately $272.5 million, with the transaction pending final board approval at that time.
Shortly after the announcement of the transaction with Saipem, Eldorado proactively submitted an all-cash offer that was $27.5 million higher than the original bid, prompting Deep Value Driller to switch buyers. Subsequently, the Deep Value Driller board stated that Eldorado’s proposal delivered greater value to shareholders and therefore decided not to approve the transaction with Saipem.
Deep Value Driller stated that its latest transaction with Eldorado is an unconditional deal, requiring no due diligence, regulatory approvals, or financing conditions. Eldorado has paid a $70 million signing fee, with the remaining $230 million to be paid upon delivery of the vessel, which is expected in the third quarter of 2026.
Additionally, Deep Value Driller has reached an agreement with its lenders to extend the term of its $125 million senior secured loan to August 1, 2026, with an option to extend it further to November 1, 2026. The company stated that upon completion of the transaction, it plans to return available free cash to shareholders, including proceeds from this sale and bareboat charter income from vessels.
It is reported that Eldorado Drilling, led by Neil Hall, was established in 2022. The company currently operates the seventh-generation drilling vessel Atlantic Zonda and has previously sold two drilling vessels to Turkey’s national oil company TPAO.