Transocean Forecasts Ultra-Deepwater growth

Offshore services firm positive on ultra-deepwater market

Offshore services and drilling firm Transocean has forecast a growth in the ultra-deepwater market in 2019, driving demand for breakbulk activity across for the sector.
The firm reported an adjusted net loss for the fourth quarter last year due to lower utilization, but noted that the year as a whole marked a return to growth.
“As evidenced by the increase in contract awards, we believe that 2018 marked the beginning of a recovery in the ultra-deepwater market. While oil prices remain volatile, the efficiencies that we have realized over the past few years have materially reduced offshore project costs and compressed the time to deliver first production thereby minimizing our customers’ risk and improving the attractiveness of offshore projects,” said Jeremy Thigpen, CEO of Transocean.
The firm reported an adjusted net loss of US$171 million after consideration of net favorable items for the fourth quarter.

FIDS to Increase Materially
Headquartered in Vernier, Switzerland, Transocean is the world's largest offshore drilling contractor and has pointed to an increase in demand as new projects pick up this year and stronger bottom-line having completed contract amortization associated with acquisitions.
“Current customer conversations suggest that FIDs in 2019 could increase materially over last year,” Thigpen said.

Eyes on Brazilan Efficiencies
This month the firm scooped two new contracts for deepwater projects in Brazil from oil major Petrobas. Estimated at about US$123 million and US$118 million in value, they were awarded for the firm’s Ocean Rig Corcovado and Ocean Rig Mykonos ultra-deepwater vessels.

“These contracts further solidify our longstanding partnership with Petrobras, and will expand our rig operations in the strategically important market of Brazil. With three rigs operating in the region, we intend to benefit from efficiencies that can only be derived from building scale in this market,” Thigpen said.

The rigs are expected to commence work in Brazil in November and the Corcovado will operate on a 629-day contract with the Mykonos on a 550-day contract.

Photo: Mykonos. Credit:Transocean