Two of the world’s top operators of offshore oil platforms have announced a definitive merger agreement, forming what they indicate will be the second-largest drilling organization, and capable a wider range of drilling technologies. Ensco plc and Pride International will have 74 rigs in operation worldwide, in all of the strategic, high-growth markets around the globe.

The combined company will be named Ensco plc and based in England.

In further detail, the combined company will have 21 ultra-deepwater and deepwater rigs, forming the second-largest and second-youngest fleet, able to drill in depths of 4,500 feet or more. Also, the combined company will have more active jackup rigs than any other driller, while mid-water rigs will represent 8% of the combined fleet.

As an operator of such an extensive series of rigs, the combined group will have customers that will include most of the world’s top national and international oil companies, along with many independent operators.

For each share of Pride stock, Ensco is offering 0.4778 news shares of Ensco, plus $15.60 in cash. The deal values Pride at $41.60 per share and carries an estimated market value of $7.3 billion.

Ensco, headquartered in London, is global offshore drilling services provider, with a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs.

Houston-based Pride International Inc. operates 26 mobile offshore drilling units, primarily floating rigs (semisubmersibles and drill ships) for deepwater drilling programs.

"The combination is an ideal strategic fit, as our rig types, markets, customers and expertise complement each other with minimal overlap,” Ensco chairman president, and CEO Dan Rabun stated.

“Pride has gained valuable expertise building and operating ultra-deepwater semisubmersibles and drill ships and has strong relationships with leading customers in Brazil and West Africa, two of the fastest-growing deepwater markets in the world,” Rabun continued. “Ensco is a leading provider of premium jackups and ultra-deepwater semisubmersible rigs with a major presence in the North Sea, Southeast Asia, North America and the Middle East. Together, we will form an even stronger company that is ideally positioned to capitalize on growth opportunities within our industry."

The chairman added that the two merger partners share a common dedication to “safety, ethics, operational excellence, employee development, customer satisfaction and disciplined risk management. These values form the foundation of our future growth," he added.

Rabun will retain his executive titles, and Ensco’s James W. Swent will continue as senior vice president and CFO. The remaining executive management team for the combined company will be chosen from among executives of both Ensco and Pride, but will named at a later date.