Transocean Announces Multi-Year Contract for an Enhanced Enterprise-Class Newbuild Drillship
HOUSTON--(BUSINESS WIRE)--June 21, 2007--Transocean Inc.(NYSE:RIG) today announced that a subsidiary of BP PLC (NYSE:BP) hasawarded a subsidiary of Transocean a drilling contract for an enhancedEnterprise-class design newbuild drillship with modifiedspecifications for expected operations offshore Angola for which BP isthe operator. The enhanced Enterprise-class drillship is expected tobe owned and operated by a joint venture which is 65% owned byTransocean and 35% owned by an Angolan partner.
The five-year drilling contract is expected to commence during thethird quarter of 2010, following shipyard construction, sea trials,mobilization to Angola and customer acceptance. The term of thedrilling contract may be extended to seven years at BP's election onor before March 31, 2008. The contract commencement date is contingenton vendor performance and other factors. Contracted revenues relatedto the five-year and seven year contract terms are approximately $900million and $1,159 million, respectively, including mobilization feesand customer reimbursed equipment. Contracted revenue represents themaximum amount of revenue that may be earned in the firm contractperiod, excluding revenues for demobilization, reimbursement for theescalation of operating costs and miscellaneous adjustments.
Construction of the dynamically positioned, double-hull drillshipis scheduled to take place at the Daewoo Shipbuilding and MarineEngineering Co., Ltd. yard in Okpo, South Korea, where three ofTransocean's previously announced enhanced Enterprise-class drillshipsare currently being constructed. The estimated total capitalexpenditure for the fourth drillship, including customer reimbursedequipment, is approximately $640 million, excluding capitalizedinterest. The rig will feature Transocean's patented dual-activitydrilling technology, allowing for parallel drilling operationsdesigned to save time and money in deepwater well construction,compared with conventional rigs. The rig will also feature expandedcompletions capabilities. It will have a variable deckload of 20,000metric tons and the capability of drilling in up to 7,500 feet ofwater depth, upgradeable to 12,000 feet of water depth and 40,000 feetof total drilling depth with additional equipment.
Statements regarding the enhanced Enterprise-class rig, operatingspecifications, contract durations, contract commencement dates, theactual amount of contract revenues, capital expenditures, duration andlocation of construction, timing and duration of maintenance andmobilization, area of operations, as well as any other statements thatare not historical facts, are forward-looking statements that involvecertain risks, uncertainties and assumptions. These include but arenot limited to operating hazards and delays, actions by customers andother third parties, factors affecting the duration of contractsincluding well-in-progress provisions, the actual amount of downtimeincluding shipyard and maintenance projects, factors resulting indayrates lower than the contractual dayrate, the future price of oiland gas and other factors detailed in the company's most recent Form10-K and other filings with the Securities and Exchange Commission(SEC), which are available free of charge on the SEC's website atwww.sec.gov. Should one or more of these risks or uncertaintiesmaterialize, or should underlying assumptions prove incorrect, actualresults may vary materially from those indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 82 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding segments of the offshoredrilling business. The company's fleet consists of 33High-Specification Floaters (semisubmersibles and drillships), 20Other Floaters, 25 Jackups and other assets utilized in the support ofoffshore drilling activities worldwide. With a current equity marketcapitalization in excess of $29 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"
CONTACT: Transocean Inc., Houston
Gregory S. Panagos, 713-232-7551
Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.