Transocean Inc. Awarded Multi-Year Contract Extension for Fifth-Generation Deepwater Drillship Deepwater Frontier
HOUSTON--(BUSINESS WIRE)--March 2, 2006--Transocean Inc. (NYSE:RIG) today announced that Reliance Industries (Reliance) has awarded the company's Fifth-Generation Deepwater drillship, Deepwater Frontier, a three-year contract extension for drilling operations offshore India. The contract is expected to commence around December 2008 following the completion of current operations offshore Brazil, scheduled out-of-service time and an existing two-year contract commitment with Reliance. Revenues possible over the three-year extension could total $522 million, excluding revenues for mobilization, demobilization and client reimbursables.
The Deepwater Frontier is scheduled to continue operating offshore Brazil until approximately June 2006, when the unit will require an estimated 90 days of out-of-service time for maintenance and mobilization to India. The rig is expected to commence a previously announced two-year contract commitment with Reliance in approximately September 2006. Prior to commencement of the three-year extension, the rig is expected to require an estimated 30 days of out-of-service time for maintenance.
The dynamically positioned Deepwater Frontier is one of 32 High-Specification rigs in the Transocean Inc. fleet, 13 of which are Fifth-Generation Deepwater Floaters. The rig, which is capable of operating in water depths of up to 10,000 feet, entered active service in 1999 following its construction in Koje Island, South Korea.
Statements regarding contract durations, contract commencement dates, revenues, area of operations, timing and duration of maintenance and mobilization, 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., Houston Analyst Contact: Jeffrey L. Chastain, 713-232-7551 or Media Contact: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.