Two Drillship Contracts Worth $181M Awarded to Transocean


Transocean Ltd. (NYSE:RIG)

Recently, Transocean Ltd. (NYSE:RIG), an American offshore drilling company with headquarters in Vernier, Switzerland, announced that it had been awarded two drilling contracts for its ultra-deepwater drillship, the Deepwater Asgard, in the Gulf of Mexico of the United States.

The two transactions were conducted by two different business owners with a total value of $181 million. According to Transocean Ltd. (NYSE:RIG), the awards will ensure the employment of the drillship for about 14 months.

The first of the two accords is a contract with Murphy Oil Corporation to operate a single well at $395,000 daily. In addition, the contract includes an option for a second well at the same day rate, and work on it is scheduled to start in the late autumn of this year, after Transocean Ltd. (NYSE:RIG) has finished its current commitment and a time during which it will be out of service. The firm’s contract is around twenty million dollars behind schedule.

It is anticipated that work on the second award will get underway in the first half of 2023. It is a contract with another operator that lasts for one year and has a daily rate of $440,000, with the provision of an additional $40,000 per day for additional products and services.

The second agreement includes three further one-year option periods at day rates that have been mutually agreed upon. Without considering revenues associated with additional products and services, it is anticipated that the firm’s backlog associated with the contract will amount to approximately 161 million dollars.

The DSME 12000 ultra-deepwater drillship known as the Deepwater Asgard was constructed in South Korea. It can drill in water at depths ranging from 12,000 to 40,000 feet to a maximum depth of 40,000 feet.

In addition to being the most prominent provider of drilling management services, Transocean is also the largest offshore drilling contractor in the world. For oil and gas exploration and development, the company offers rigs for rent on a contractual basis. Transocean Ltd. (NYSE:RIG) provides offshore drilling rigs, equipment, services, and manpower to exploration and production companies worldwide, emphasizing ultra-deepwater and harsh environment drilling services.

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