Transocean Inc. Announces Contracts for Two High-Specification Drillships
HOUSTON--(BUSINESS WIRE)--June 13, 2005--Transocean Inc. (NYSE:RIG) today announced that it has been awarded contracts for two High-Specification drillships, the Deepwater Millennium and the Deepwater Expedition, for drilling operations in the U.S. Gulf of Mexico and offshore Egypt, respectively.
The Deepwater Millennium, a Fifth-Generation, dynamically positioned drillship, has been awarded a two-year contract by Anadarko Petroleum Corporation (NYSE:APC) for drilling operations in the U.S. Gulf of Mexico. Revenues of approximately $209 million could be generated over the two-year contract, which went into effect last week. This contract takes the place of a six-month firm contract with two previously reported and unexercised options with Anadarko that could have generated maximum, combined revenues of approximately $146 million over the 18-month period. The new contract assures Anadarko rig access for its deepwater portfolio over the next two years. The current contract and replaced contract with options are exclusive of revenues for mobilization, demobilization and client reimbursables.
The Deepwater Expedition, also a Fifth-Generation, dynamically positioned drillship, has been awarded a three-well, estimated 90-day contract plus a 30-day option well from a Shell subsidiary for drilling operations offshore Egypt in the eastern Mediterranean Sea. Following the completion of the rig's current contract with Petrobras in Brazil, which is expected to conclude in October 2005, the Deepwater Expedition will commence an estimated 30-day mobilization to Egypt and is expected to begin the 90-day contract in November 2005. Revenues of approximately $22 million could be generated over the estimated 90-day contract period. Estimated contract revenues are exclusive of revenues for mobilization, demobilization and client reimbursables.
The Deepwater Millennium and Deepwater Expedition are two of 32 High-Specification rigs in the Transocean Inc. fleet, 13 of which are Fifth-Generation Deepwater Floaters. The rigs entered active service as newbuild drillships in 1999.
Statements regarding contract duration, contract commencement date, contract revenues, contract dayrates, contract options, as well as any other statements that are not historical facts, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, actions by customers and other third parties, the future price of oil and gas, the actual revenues earned and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission (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 should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
Transocean Inc. is the world's largest offshore drilling contractor with a fleet of 93 mobile offshore drilling units. The company's mobile offshore drilling fleet, consisting of a large number of high-specification deepwater and harsh environment drilling units, is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. The company's fleet consists of 32 High-Specification Floaters (semisubmersibles and drillships), 24 Other Floaters, 26 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $17 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
CONTACT: Transocean Inc., Houston Analyst Contact: Jeffrey L. Chastain, 713-232-7551 or Media Contact: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.