Transocean Retires Several Offshore Units In The Last Quarter.

Transocean Retires Several Drilling Units In The Last Three Months, Despite Acquiring New Contracts.

Transocean Retires Units and since its last report, showing the status of the previous fleet, the global offshore drilling giant reported the acquisition of new contracts and extensions. According to the report on the latest status of its fleet, issued on Monday, the unit Development Driller III received a 180-day contract with ExxonMobil off the coast of Equatorial Guinea. The rig has been idle since October 2017.

After maintenance, reactivation, and a contract preparation period, it is expected that the floater will begin operations in the first quarter of 2019. The day rate was not disclosed. The company also reported that it has retired the following units: Deepwater Discovery, Deepwater Frontier, Deepwater Millennium, and Songa Trym. Murphy Oil exercised an option for a well for the drillship Deepwater Asgard in the Gulf of Mexico, and the contract is set to end in November 2018.

As recently reported, the semi-submersible GSF Development Driller I of Transocean received a contract for 11 wells plus four options for one well with Chevron in Australia. The contract starts in January 2019 and ends in August 2021. The day rate is US$ 165,000. Shell exercised two options for one well for the semi-submersible Deepwater Nautilus offshore Malaysia. The contract for this rig now ends in November 2018.

Spitsbergen, a company in the semi-submersible segment, received a contract for three wells plus six options for one well with Equinor offshore Norway. Additionally, Equinor exercised two options for one well. The daily rate for the rig from October to December 2018 is US$ 218,000, from December to January 2019 US$ 238,000, from June to July 2019 US$ 278,000, and undisclosed from July 2019 to April 2022. Transocean Barents Semi-Sub received a contract extension of six months, plus one option with Suncor Energy offshore Eastern Canada. The contract starts in November and ends in April 2019 with a rate of US$ 285,000.

Azinor Catalyst awarded a contract for one well in the North Sea of the United Kingdom to the semi-submersible Transocean Leader. The contract starts and ends in August, and after that, the rig will continue working for EnQuest also in the North Sea until January 2019. The Transocean Arctic semi-submersible won an option for one well in Norway with Faroe Petroleum. It ends in October 2018. As previously reported, the semi-sub Transocean 712 received a contract for 13 wells plus one option for one well with ConocoPhillips in the North Sea of the United Kingdom.

Shell Reduces Day Rates

In the report, Transocean revealed that some of its drillships have had lower entry rates. That is, Shell reduced the daily rate of the Deepwater Poseidon from US$ 519,000 to US$ 488,000 until September 2018 and from September to February 2028 to US$ 477,000. Additionally, the daily rate of Deepwater Pontus was reduced from US$ 519,000 to US$ 477,000. Furthermore, the daily rate of Deepwater Proteus was reduced from US$ 486,000 to US$ 473,000. Finally, Shell reduced the rate of Deepwater Thalassa from US$ 488,000 to US$ 474,000. All these drillers are operating in the Gulf of Mexico.

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