Trinidad Drilling sells rigs to Saudi Arabia instead of moving them to U.S.

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.