Trinidad Drilling sells rigs to Saudi Arabia instead of moving them to U.S.
A Trinidad Drilling rig sits atop the Combs Ranch Unit 29-33-70-1H natural gas well on Monday, May 7, 2012 in Converse County north of Douglas, Wyo. (AP Photo/Star-Tribune, Alan Rogers)
The Canadian Press
Published Thursday, April 12, 2018 5:26PM EDT
CALGARY -- Trinidad Drilling Ltd. says it has struck a deal to sell its three drilling rigs in Saudi Arabia for about $114 million instead of moving them to the United States as it announced earlier this year.
The Calgary-based drilling company says it will realize about $69 million from the sale of the rigs, with the rest payable to a partner.
Trinidad says it will upgrade three wholly-owned rigs already in the United States for about $16 million to meet customer demand in Texas, in lieu of the Saudi-bound rigs.
Trinidad had wanted to move the rigs to the U.S. to take advantage of high demand there but CEO Brent Conway says selling is a better option because the funds can be used for its capital program or to repay debt.
The company is in the midst of a review of strategic options to create additional value for shareholders.