Transocean Inc. Awarded Contracts for Construction of Enhanced Enterprise-Class Drillship and Semisubmersible Rig Henry Goodrich
HOUSTON, Jun 22, 2006 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today announced that Hydro (NYSE:NHY) has awarded the company a drilling contract for the construction of an enhanced Enterprise-class drillship plus a multi-year contract award for the High-Specification semisubmersible rig Henry Goodrich. Combined revenues possible from the two contract awards total approximately $950 million over six years.
The enhanced Enterprise-class drillship is being designed to include the most advanced drilling capabilities in the offshore drilling industry. Hydro has awarded the company a four-year drilling contract, which is expected to commence by mid-2009, following shipyard construction, sea trials, mobilization to the U.S. Gulf of Mexico and customer acceptance. The contract commencement date is contingent on vendor performance and other factors. Revenues of approximately $694 million are possible over the four-year contract period, excluding revenues for mobilization, demobilization and client reimbursables.
Construction of the dynamically positioned, double-hull drillship is expected to take place at the Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME) yard in Okpo, South Korea, with an estimated total capital expenditure of approximately $615 million, excluding capitalized interest. The rig will feature Transocean's patented dual-activity drilling technology, allowing for parallel drilling operations designed to save time and money in deepwater well construction, compared with conventional rigs. The dual-activity technology, along with a new and enhanced top drive system, an expanded high-pressure mud-pump system and other unique features of the drillship target the drilling of wells up to 40,000 feet of total depth. The rig will have a variable deckload of more than 20,000 metric tons and is designed to drill in water depths of up to 12,000 feet. The enhanced Enterprise-Class drillship will be the second unit to be constructed for Transocean in the DSME yard, following the previously awarded five-year contract from Chevron Corporation for the Discoverer Clear Leader. Both units are enhanced versions of the company's three predecessor Enterprise-class drillships, which have set drilling records in recent years, including the water-depth drilling record of 10,011 feet held by the Discoverer Deep Seas.
In addition, Hydro has awarded the semisubmersible rig Henry Goodrich a two-year contract for drilling operations in the U.S. Gulf of Mexico. The contract is expected to commence in February 2007, following the completion of a current contract commitment offshore eastern Canada. The rig's water depth capability will be improved to 5,000 feet with the purchase of additional equipment and when combined with a client-provided pre-laid mooring system. Revenues of approximately $256 million are possible over the two-year contract period, excluding revenues for mobilization, demobilization, contract preparation and client reimbursables.
Statements regarding the enhanced Enterprise-class rig, operating specifications, contract durations, contract commencement dates, revenues, costs, duration and location of construction, timing and duration of maintenance and mobilization, area of operations, 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 88 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 33 High-Specification Floaters (semisubmersibles and drillships), 21 Other Floaters, 25 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $23 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
SOURCE: Transocean Inc.
Transocean Inc. Analyst Contact Jeffrey L. Chastain, 713-232-7551 or Media Contact Guy A. Cantwell, 713-232-7647