KG1 and KG2 sold

Just read that Pacific’s parent company will sell their 50% interest in the KG1 and KG2 to Transocean. They had a put option meaning they could force Transocean to buy after 5 years, but I would have thought they’d keep one and Transocean the other at the end of the joint venture.

Anyone know what kind of shape the ships are in after 5 years in India?

Those rigs didn’t go to work until mid to late 2009 so they’ve only been in India for a couple of years. The five years included the build time so I suspect they’re still in pretty good shape. I worked with a Company Man recently who was on the 2 previously and thought pretty highly of the rig.

I’m thinking Pacific is going to take the stock payout option vs. the cash and bet on the RIG stock price continuing an upward trend.