Transocean Ltd. Announces 5-Year $830 Million USD Drilling Contract for Newbuild Ultra-Deepwater Drillship
December 28 2018 - 6:36AM
Transocean Ltd. (NYSE: RIG) announced today that it has signed a
rig design and construction management contract, as well as a
five-year drilling contract, with Chevron USA, Inc. (“Chevron”) for
one of its two dynamically positioned ultra-deepwater drillships
(“the drillship”) currently under construction at the Jurong
shipyard in Singapore. The drilling contract has an estimated
backlog of $830 million USD, excluding mobilization and
reimbursables. The drilling contract is subject to design,
construction, and delivery requirements set forth in the
construction contract.
The rig will be the first ultra-deepwater
floater rated for 20,000 psi operations and is expected to commence
operations in the Gulf of Mexico in the second half of 2021.
In the event of termination for convenience by
the customer, Transocean will be compensated for its incremental
20,000 psi subsea investment in the rig. Additionally, a
termination for convenience occurring after April 2020, would
result in a substantial termination fee.
The drillship will feature the most advanced
capabilities and state-of-the-art technology available including
dual 20,000 psi blowout preventers, net hook-load capacity of three
million pounds, 165-ton active heave compensating crane, and an
enhanced dynamic positioning system. The rig’s high reliability
power plant will also be configured to comply with Tier III
International Maritime Organization emissions standards.
“We are extremely pleased to announce that we
have entered into an agreement with Chevron to construct and
operate the industry’s most capable ultra-deepwater drillship,”
said Jeremy Thigpen, President and CEO. “Transocean has a long and
storied history of introducing new technologies that enable our
customers to safely and efficiently access the world’s most
challenging reservoirs. Adding to that history, we are proud to be
delivering the industry’s first rig capable of drilling and
completing wells requiring subsea equipment rated to 20,000
psi.”
Thigpen concluded: “On behalf of Transocean, I
thank Chevron for their long-standing partnership, and trust in our
capabilities. I also thank the members of the Chevron and
Transocean teams who have spent countless hours on the development
of this game-changing solution.”
About Transocean
Transocean is a leading international provider
of offshore contract drilling services for oil and gas wells. The
company specializes in technically demanding sectors of the global
offshore drilling business with a particular focus on deepwater and
harsh environment drilling services, and believes that it operates
the highest specification floating offshore drilling fleet in the
world.
Transocean owns or has partial ownership
interests in, and operates a fleet of 50 mobile offshore drilling
units consisting of 32 ultra-deepwater floaters, 14 harsh
environment floaters, and four midwater floaters. In addition,
Transocean is constructing four ultra-deepwater drillships; and one
harsh environment semisubmersible in which the company has a 33.0%
interest.
Forward-Looking Statements
The statements described in this press release
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 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 future prices of oil and gas, the
intention to scrap certain drilling rigs, the success of our
business following the acquisitions of Songa Offshore SE and Ocean
Rig UDW Inc., 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, 2017, 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 article 652a or article 1156 of the Swiss
Code of Obligations. 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 Contacts:Bradley
Alexander+1 713-232-7515
Lexington May+1 832-587-6515
Media Contact:Pam Easton+1
713-232-7647
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