Transocean Ltd. and Eneti Inc. have announced a joint venture for offshore wind installation demands. This non-binding memorandum of understanding (MOU) indicates the companies’ intentions to form a joint venture company that will engage in offshore wind foundation installation activities.
Transocean has over three hundred plus rig-years of experience operating a global fleet of offshore drilling rigs. Eneti, through Seajacks International Ltd., has installed more than 500 wind turbine foundation components at wind farms across Asia, Europe, and the United Kingdom. The proposed joint venture benefits both partners in their respective businesses as they provide offshore services.
Although the partnership is still in negotiation, the proposed terms specify that operations are to be equally performed by both parties. In more detailed terms, the agreement dictates that the joint venture would be responsible for converting up to two fit-for-purpose floating vessels into offshore wind foundation installation vessels.
Upgrades to the vessels would include a 5,200t crane and are expected to provide them with the capability to carry up to six 3,500t monopile foundations with 12m diameter and possess certain other environmentally responsible and efficiency-enhancing operating features.
Navigating Rising Costs for Offshore Wind Installation
Eneti has been faced with rising construction costs, which has previously led to dissolved partnerships. In February 2022, Eneti stepped away from an opportunity due to high cost and design complications. As of February 2023, the company has reported over $100 million in firm backlog, and demand continues to increase. Sharing that the wind turbine sector is a high-growth industry, and foundation installations are in high demand.
Moreover, the partnership with Transocean comes at a time when the drilling industry is starting a multi-year upcycle. The proposed joint venture will combine Transocean’s experience operating a global fleet with Eneti’s experience in the installation market. Both companies have the right to invest in the joint venture with additional partners.
About Eneti Inc.
Eneti Inc. is a leading provider of installation and maintenance vessels to the offshore wind sector. They have invested in the next generation of wind turbine installation vessels. Additional information about the Company is available on the Company’s website: www.eneti-inc.com.
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world. Read more here: https://www.deepwater.com/