Transocean Ltd. Secures $252 Million Contract for Newbuild, Ultra-Deepwater Drillship
August 26 2021 - 6:30AM
Transocean Ltd. (NYSE: RIG) announced today that BOE Exploration
& Production LLC (“BOE”) awarded Transocean a $252 million firm
contract for its newbuild ultra-deepwater drillship, the Deepwater
Atlas, including a mobilization fee of $30 million. Additionally,
the contract provides for a significant performance bonus
opportunity based upon agreed operating metrics.
This award results from the final investment
decision of BOE and the Shenandoah working interest owners to
sanction the previously announced Shenandoah project in the U.S.
Gulf of Mexico.
The Shenandoah program comprises two phases.
Once delivered from the shipyard, the Deepwater Atlas is expected
to commence operations in the third quarter of 2022, initially
using dual blowout preventers (“BOP”) rated to 15,000 psi. The
initial drilling program is expected to last approximately 255 days
and result in approximately $80 million of contract drilling
revenue.
Upon completion of the initial drilling program,
a 20,000 psi BOP will be installed on the rig, making it
Transocean’s second asset with a 20,000 psi-rated well control
system. The BOP installation and commissioning is expected to last
45 to 60 days, contributing approximately $17 million of revenue.
Following the 20,000 psi BOP installation, the Deepwater Atlas will
commence the second phase of the project – the well completion
program. This phase is expected to last approximately 275 days and
contribute approximately $125 million of contract drilling
revenue.
“This is a significant milestone for Transocean,
BOE and the Shenandoah partners, as we jointly venture into this
new frontier of ultra-deepwater drilling,” said President and Chief
Executive Officer, Jeremy Thigpen. “We are extremely pleased to
have secured the maiden contract for the Deepwater Atlas; the first
of our two 8th generation ultra-deepwater drillships that will
enter the market in 2022, both of which will be outfitted for
20,000 psi ultra-deepwater well operations. We are very encouraged
by the growing list, across multiple customers, of 20,000 psi
opportunities in the U.S. Gulf of Mexico. And, with the only two
assets in the world specifically designed to maximize efficiencies
for 20,000 psi well completions, we are the undisputed market
leader in this space, and thus excited about the future prospects
for these state-of-the art assets.”
About Transocean
Transocean is a leading international provider
of offshore contract drilling services for oil and gas wells.
Transocean specializes in technically demanding sectors of the
global offshore drilling business with a particular focus on
deepwater and harsh environment drilling services, and operates the
highest specification floating offshore drilling fleet in the
world.
Transocean owns or has partial ownership
interests in and operates a fleet of 37 mobile offshore drilling
units, including 27 ultra-deepwater floaters and 10 harsh
environment floaters. In addition, Transocean is constructing two
ultra-deepwater drillships.
Forward-Looking Statements
The statements described herein that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
These statements could contain words such as "possible," "intend,"
"will," "if," "expect," or other similar expressions.
Forward-looking statements are based on management’s current
expectations and assumptions, and are subject to inherent
uncertainties, risks and changes in circumstances that are
difficult to predict. As a result, actual results could differ
materially from those indicated in these forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to, estimated duration of
customer contracts, contract dayrate amounts, future contract
commencement dates and locations, planned shipyard projects and
other out-of-service time, sales of drilling units, timing of the
company’s newbuild deliveries, operating hazards and delays, risks
associated with international operations, actions by customers and
other third parties, the fluctuation of current and future prices
of oil and gas, the global and regional supply and demand for oil
and gas, the intention to scrap certain drilling rigs, the success
of our business following prior acquisitions, the effects of the
spread of and mitigation efforts by governments, businesses and
individuals related to contagious illnesses, such as COVID-19, and
other factors, including those and other risks discussed in the
company's most recent Annual Report on Form 10-K for the year ended
December 31, 2020, and in the company's other filings with the SEC,
which are available free of charge on the SEC's website at:
www.sec.gov. Should one or more of these risks or uncertainties
materialize (or the other consequences of such a development
worsen), or should underlying assumptions prove incorrect, actual
results may vary materially from those indicated or expressed or
implied by such forward-looking statements. All subsequent written
and oral forward-looking statements attributable to the company or
to persons acting on our behalf are expressly qualified in their
entirety by reference to these risks and uncertainties. You should
not place undue reliance on forward-looking statements. Each
forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statements to reflect events
or circumstances that occur, or which we become aware of, after the
date hereof, except as otherwise may be required by law. All
non-GAAP financial measure reconciliations to the most comparative
GAAP measure are displayed in quantitative schedules on the
company’s website at: www.deepwater.com.
This press release, or referenced documents, do
not constitute an offer to sell, or a solicitation of an offer to
buy, any securities, and do not constitute an offering prospectus
within the meaning of the Swiss Financial Services Act (“FinSA”) or
advertising within the meaning of the FinSA. Investors must rely on
their own evaluation of Transocean and its securities, including
the merits and risks involved. Nothing contained herein is, or
shall be relied on as, a promise or representation as to the future
performance of Transocean.
Analyst Contact:Lexington May+1
832-587-6515
Media Contact:Pam Easton+1 713-232-7647
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