Transocean Ltd. Announces Five-Year Contracts for Two Newbuild\r High-Specification Jackups
ZUG, SWITZERLAND, Feb 16, 2011 (MARKETWIRE via COMTEX) --
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that one ofits subsidiaries has been awarded five-year drilling contracts fortwo newbuild high-specification jackup rigs for operations inThailand for a subsidiary of Chevron Corporation (NYSE: CVX).
The five-year drilling contracts are expected to commence during thefirst quarter of 2013 and third quarter of 2013, respectively,following shipyard construction and mobilization. The contractcommencement dates are contingent on vendor performance and otherfactors. The estimated contract revenues are fixed for the firstthree years and may be adjusted for the last two years. The estimatedrevenues which could be generated over each five-year contract term,assuming the fixed rate in effect during the first three yearscontinues during the fourth and fifth years of the contract terms,are approximately $246 million for each rig, excluding revenues formobilization, demobilization, and miscellaneous adjustments.
One of Transocean's subsidiaries has executed a shipyard contractwith Keppel FELS Limited (Keppel FELS) to build both of thehigh-specification Super B Class jackups. Construction is scheduledto take place at Keppel FELS' yard in Singapore. The combined capitalcost for the two rigs is estimated to be approximately $400 million,excluding capitalized interest. Transocean has options to order threeadditional 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 andconstructing wells 35,000 feet deep. The rigs will feature the mostadvanced offshore drilling technology, including offline tubularhandling features and simultaneous operations support. In addition,the rigs will have accommodation for 150 personnel.
Statements in this news release regarding newbuild high-specificationjackup rigs, operating specifications, contract durations, contractcommencement 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 statementsthat are not historical facts, are forward-looking statements thatinvolve certain risks, uncertainties and assumptions. These includebut are not limited to operating hazards and delays, actions bycustomers and other third parties, the future price of oil and gas,the actual revenues earned and other factors detailed in thecompany's most recent Form 10-K and other filings with the Securitiesand Exchange Commission (SEC), which are available free of charge onthe SEC's website at www.sec.gov. Should one or more of these risksor uncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those indicated.Forward-looking statements are based on current expectations andTransocean disclaims any intention or obligation to update publiclyor revise such statements, whether as a result of new information,future events or otherwise.
Transocean is the world's largest offshore drilling contractor andthe leading provider of drilling management services worldwide. Witha fleet of 138 mobile offshore drilling units as well as oneultra-deepwater newbuild drillship and three high-specificationjackups under construction, Transocean's fleet is considered one ofthe most modern and versatile in the world due to its emphasis ontechnically demanding segments of the offshore drilling business.Transocean owns or operates a contract drilling fleet of 47High-Specification Floaters (Ultra-Deepwater, Deepwater andHarsh-Environment semisubmersibles and drillships), 25 MidwaterFloaters, nine High-Specification Jackups, 54 Standard Jackups andother assets utilized in the support of offshore drilling activitiesworldwide.
For more information about Transocean, please visit our website atwww.deepwater.com.
SOURCE: Transocean Ltd.