Drilling contractor Transocean of Houston is “selling” the GSF Arctic II and GSF Arctic IV to Northern Offshore Ltd, news that completes an earlier report that Northern is buying two rigs.

The semi-submersibles will cost Northern $750 million when the deal closes in third-quarter 2008.

The deal, however, likens the buying of the rigs with the buying of a car: “Transocean subsidiaries will provide seller financing for $745 million of the purchase price until December 31, 2010 at an annual interest rate of 10 percent,” a statement from Houston said.

Starting a one month after closing of the GSF Arctic II sale, Transocean will receive principal and interest payments of $200,000 per day for the rig from the buyer.

The GSF Arctic II and GSF Arctic IV are so-called third-generation Friede & Goldman Enhanced Pacesetter design semisubmersible rigs capable of working in up to 1,200 feet 1,500 ft water depths.

Tags: Northern Offshore Ltd., Transocean Inc.