Transocean Secures Major Rig Contracts


US$352.9 Million in New Contracts

Offshore specialist TransOcean reported improved contract opportunities for ultra-deepwater and drilling services, with new contracts worth more than US$350 million.
 
The cpontract wins come as the company forecasts continued improvement in the offshore drilling market over 2020.

“Customer demand for the highest specification ultra-deepwater floaters now equals or exceeds the number of marketable rigs currently available in many areas,” said Jeremy Thigpen, CEO of Transocean.


Materially Increased Dayrates

The new contracts include word for major oil field developers including ConocoPhillips, Talos, Beacon and Woodside, in locations ranging from Norway and Myanmar to Trinidad and U.S. Gulf of Mexico.
 
A forecast increase in demand from offshore development in 2020 and a supply crunch from specialized operators is expected to drive up day rates, with TransOcean charging out at between US$210,000 and US$250,000 per day.
 
“New contracts more consistently reflect materially increased dayrates, which will generate significantly improved cash flow,” Thigpen added.

Based in Vernier, Switzerland, Transocean is the world's second-largest offshore drilling contractor and operates a fleet of 45 mobile offshore drilling units consisting of 28 ultra-deepwater floaters, 14 harsh environment floaters, and three midwater floaters. The firm is also constructing two ultra-deepwater drillships.


Exercised Options

Contracts cover work on the Leiv Eiriksson in Norway, Discoverer Inspiration and Deepwater Asgard in the U.S. Gulf of Mexico, Development Driller III and Dhirubhai Deepwater KG2 in Myanamar.
 
Further exercised options have been announced for work on the Deepwater Invictus and Deepwater Asgard in the U.S. Gulf of Mexico, Transocean Norge in Norway, and Deepwater Nautilus in Malaysia.
 
The firm will utilize its fleet of 45 mobile offshore drilling units consisting of 28 ultra-deepwater floaters, 14 harsh environment floaters and three midwater floaters for the projects.
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