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Offshore Drilling Market Improves and Transocean Secures $352.9 Million in New Orders

Written by Paulo Nogueira
Published on 09/01/2020 at 05:49
Updated on 09/01/2020 at 06:14
Transocean Perfuração Offshore
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The Offshore Drilling Contractor Transocean Secured US$ 352.9 Million in Contract Backlog Against New Contracts and Extensions. The Company Views This as a Sign of Improvement in the Offshore Drilling Market

According to Transocean’s statement on Wednesday, as the offshore drilling market continues to improve, the company is seeing an increase in contract opportunities for its deepwater drilling services in ultra-deep waters and harsh environments.

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“Client Demand for High-Specification Ultra-Deepwater Rigs is Now Equal to or Exceeds the Number of Marketable Rigs Currently Available in Many Areas”, said Transocean President and CEO Jeremy Thigpen.

“As a Result, New Contracts More Consistently Reflect the Significant Increase in Day Rate, Which Will Drive Significantly Improved Cash Flow”.

Since its last fleet status report issued in October 2019, the company has secured an additional US$ 352.9 million in backlog contracts from new contracts and extensions of existing contracts.

According to Transocean’s update on Wednesday, and as previously reported, the semi-submersible Leiv Eiriksson Received a 125-Day Contract with ConocoPhillips in Norway. The day rate for this contract is US$ 235,000.

Additionally, Transocean stated that the drilling vessel Discoverer Inspiration has Won a Contract with Talos Energy in the Gulf of Mexico, USA. The contract is valid for 120 days, with a daily rate of US$ 210,000.

The Deepwater Asgard Drilling Vessel Received a 200-Day Contract from Beacon in the Gulf of Mexico, USA. The rate is US$ 220,000 per day.

As previously reported, the semi-submersible Development Driller III received a One-Year Contract with an Undisclosed Operator off the Coast of Trinidad and Tobago. The day rate is US$ 250,000.

Transocean also said that the Dhirubhai Deepwater KG2 Drilling Vessel has Won a 180-Day Contract with Woodside in Myanmar with a Daily Rate of US$ 250,000.

Contract Extensions

When it Comes to Contract Extensions, BHP Exercised an Option for the Deepwater Invictus Drilling Vessel in the Gulf of Mexico, USA. The Duration is 365 Days with a Day Rate of $ 155,000.

Additionally, Equinor Exercised Two Options for the Transocean Norge Semi-Submersible for 32 Days Each. The Rig is Operating in Norway with a Day Rate of US$ 291,000.

Petronas Exercised an Option for 180 Days for the Deepwater Nautilus Semi-Submersible in Malaysia, with a Daily Rate of US$ 140,000.

Finally, Beacon Exercised an Option for the Deepwater Asgard Drilling Vessel. The Options are for 74 Days, with a Day Rate of US$ 240,000.

Paulo Nogueira

Graduated in Electrical Engineering from one of the country's technical education institutions, the Instituto Federal Fluminense - IFF (formerly CEFET), he worked for several years in the offshore oil and gas, energy, and construction sectors. Today, with over 8,000 publications in online magazines and blogs on the energy sector, the focus is to provide real-time information on the Brazilian job market, macro and microeconomics, and entrepreneurship. For questions, suggestions, and corrections, please contact us at informe@clickpetroleoegas.com.br. Please note that we do not accept resumes at this contact.

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