Trinidad Drilling Ltd. 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.
The Calgary-based drilling company had announced earlier in the year it was moving the rigs to the United States, but according to Canadian Press, it will realize about $69 million from the sale of the rigs to the Saudis, 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 told Canadian Press that selling is a better option because the funds can be used for its capital program or to repay debt.
The company is currently in the midst of a review of strategic options to create additional value for shareholders.