Rival drilling tycoons betting on offshore oil-rig recovery

Oslo

BILLIONAIRE John Fredriksen and his former top adviser Tor Olav Troim may not see eye to eye anymore, but they agree on this: It's time to buy offshore rigs again.

Foreseeing a boom in oil drilling a decade ago, the shipping tycoon and his right-hand man built one of the biggest offshore-rig companies before they fell out in 2014. With the industry now in the doldrums with assets at bargain prices, the two are at it again, this time as competitors.

"When these boys start looking at the rig market, that's a reason alone for others to have a look as well," said Harald Oyen, head of securities research at SEB AB in Oslo. "When they smell a good deal, there must be something in the making."

Mr Troim's Borr Drilling Ltd, which announced its first rig deal after setting up three months ago, is now buying Transocean Ltd's entire fleet of jack-up rigs for US$1.35 billion, it said on Monday. That would be the biggest acquisition in the offshore drilling industry since the downturn began. Mr Fredriksen - who registered his new Northern Drilling Ltd investment company on Norway's over-the-counter market on Monday - recently acquired a floating rig for US$365 million and an option for another at US$400 milli…