Transocean Ltd. Announces Five-Year Contracts for Two Newbuild High-Specification Jackups
ZUG, SWITZERLAND, Feb 16, 2011 (MARKETWIRE via COMTEX) --
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that one of its subsidiaries has been awarded five-year drilling contracts for two newbuild high-specification jackup rigs for operations in Thailand for a subsidiary of Chevron Corporation (NYSE: CVX).
The five-year drilling contracts are expected to commence during the first quarter of 2013 and third quarter of 2013, respectively, following shipyard construction and mobilization. The contract commencement dates are contingent on vendor performance and other factors. The estimated contract revenues are fixed for the first three years and may be adjusted for the last two years. The estimated revenues which could be generated over each five-year contract term, assuming the fixed rate in effect during the first three years continues during the fourth and fifth years of the contract terms, are approximately $246 million for each rig, excluding revenues for mobilization, demobilization, and miscellaneous adjustments.
One of Transocean's subsidiaries has executed a shipyard contract with Keppel FELS Limited (Keppel FELS) to build both of the high-specification Super B Class jackups. Construction is scheduled to take place at Keppel FELS' yard in Singapore. The combined capital cost for the two rigs is estimated to be approximately $400 million, excluding capitalized interest. Transocean has options to order three additional high-specification jackup rigs.
The jackup rigs, which are Keppel FELS's latest proprietary design, will be capable of operating in water depths up to 350 feet and constructing wells 35,000 feet deep. The rigs will feature the most advanced offshore drilling technology, including offline tubular handling features and simultaneous operations support. In addition, the rigs will have accommodation for 150 personnel.
Statements in this news release regarding newbuild high-specification jackup rigs, operating specifications, contract durations, contract commencement dates, estimated contract revenues, area of operations, estimated capital costs, duration and location of construction, options to order additional units, 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. Forward-looking statements are based on current expectations and Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Transocean is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 138 mobile offshore drilling units as well as one ultra-deepwater newbuild drillship and three high-specification jackups under construction, Transocean's fleet 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. Transocean owns or operates a contract drilling fleet of 47 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification Jackups, 54 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide.
For more information about Transocean, please visit our website at www.deepwater.com.
SOURCE: Transocean Ltd.