Transocean Inc. Awarded Contracts for Three High-Specification Deepwater Floaters
HOUSTON--(BUSINESS WIRE)--Feb. 13, 2006--Transocean Inc. (NYSE: RIG) today announced that three of the company's High-Specification Deepwater Floaters, the Transocean Marianas, Jack Bates and Sedco 709 have been awarded contracts of two to three years in duration for drilling operations in the U.S. Gulf of Mexico and West Africa.
The semisubmersible rig Transocean Marianas has been awarded a three-year contract from BP (NYSE: BP). The contract is expected to commence in approximately December 2006, in direct continuation of the rig's current contract, also with BP. Revenues of $476 million are possible over the three-year period. The Transocean Marianas is presently in a shipyard in Brownsville, Texas repairing damage sustained during Hurricane Rita. The rig is expected to exit the shipyard by the end of the first quarter of 2006, at which time the rig should resume operations in the U.S. Gulf of Mexico under the current contract from BP. An additional 30 days of out-of-service time is expected during 2006 to complete rig repairs and anticipated upgrades.
The semisubmersible rig Jack Bates has been awarded a two-year contract from Woodside Energy (USA), with an expected commencement date in the U.S. Gulf of Mexico of approximately November 2006, following an estimated 60-day period for mobilization from Australia, maintenance and contract preparation projects. Revenues of $248 million are possible over the contract period. The Jack Bates is presently drilling at the Woodside-operated Enfield field development program offshore Australia until approximately April 2006. Following the Woodside program, the rig is expected to commence a contract with Chevron (NYSE: CVX) on Chevron's Greater Gorgon project and should conclude the assignment in July 2006. The rig's mobilization from Australia to the U.S. Gulf of Mexico could commence as late as September 2006, depending on the arrival of a designated dry tow vessel.
The semisubmersible rig Sedco 709 has been awarded a two-year contract from Shell Nigeria Exploration and Production Company (SNEPCO) for drilling on SNEPCO's Bonga field development program offshore Nigeria. The contracted is expected to commence in approximately September 2006, following the estimated completion in March 2006 of an existing contract with ExxonMobil (NYSE: XOM) offshore Angola, and an estimated 150 days of out-of-service time for mobilization, maintenance and contract preparation. Revenues totaling $150 million are possible over the two-year contract.
Estimated contract revenues exclude revenues for mobilization, demobilization, contract preparation and client reimbursables.
The Transocean Marianas, Jack Bates and Sedco 709 are three of Transocean's 32 High-Specification Deepwater Floaters, each capable of operating in water depths of 4,500 feet and greater.
Statements regarding contract durations, contract commencement dates, revenues, timing and duration of mobilizations, upgrade, repair, maintenance and contract preparation projects, 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, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, the future price of oil and gas 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 90 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), 23 Other Floaters, 25 Jackups and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $25 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
CONTACT: Transocean Inc. Analysts: Jeffrey L. Chastain, 713-232-7551 or Media: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.