Transocean announced Monday it will spin off eight active rigs in the North Sea to create a new entity.
The new business will be called Caledonia Offshore Drilling Company.
Transocean plans to form Caledonia in the second half of the year.
An exact date of separation has not been determined.
The company did not give specifics of the the structure to be used, but plans for a master limited partnership as part of an agreement with activist shareholder Carl Icahn has previously been discussed.
“Various options for the separation of Caledonia are under consideration. Caledonia is expected to have a focused approach to assets and operations in the UK North Sea and it will continue to provide best-in-class service to customers,” Transocean said in a statement.
The rigs in question are the Sedco 704, Sedco 711, Sedco 712, Sedco 714, Transocean John Shaw, Transocean Prospect, GSF Arctic III, and JW McLean.