Transocean Ltd. Announces 5-Year Contract For Newbuild Ultra-Deepwater Drillship
ZUG, SWITZERLAND, Oct. 15, 2013 - Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced it has been awarded a five-year contract for a newbuild dynamically positioned ultra-deepwater drillship by Chevron U.S.A. Inc. Shipyard delivery is scheduled for the second quarter of 2016. After customer acceptance, the contract is expected to commence in the fourth quarter of 2016, contributing an estimated revenue backlog of approximately $1.1 billion, excluding mobilization. Excluding capitalized interest, the capital investment for the newbuild drillship is an estimated $725 million. Capital costs include the shipyard contract; project management; all owner-furnished equipment; capital spares and inventory; and all costs associated with operational readiness.
Featuring state-of-the-art equipment, the newbuild drillship will include Transocean's patented dual-activity drilling technology that allows for parallel drilling operations. The vessel will be outfitted with two 15,000 psi blowout preventers (BOPs) which are expected to reduce non-productive time between wells. The drillship will be able to accommodate a future upgrade to a 20,000 psi BOP when it becomes available from the OEM suppliers. The rig will also feature an industry-leading 2.5-million-pound hook load capacity, a variable deckload capacity of 23,000 metric tons, enhanced well-completion capabilities and diesel engines configured to comply with anticipated Tier III International Maritime Organization (IMO) emissions standards. The drillship is designed and outfitted to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet. In addition, the drillship will have accommodations for 240 people.
Construction of the newbuild drillship is expected to commence during the fourth quarter of 2014 at the Daewoo Shipbuilding and Marine Engineering Co., Ltd. facility in Okpo, South Korea, where Transocean's five Enhanced Enterprise-Class rigs were built and where the company currently has six other ultra-deepwater drillships under construction.
"We are delighted to continue our partnership with Chevron in pioneering ultra-deepwater drillships that in the past have set world records and achieved strong utilization with time-saving efficiencies," said Steven L. Newman, President and Chief Executive Officer of Transocean Ltd. "Further, the addition of this latest newbuild drillship demonstrates the execution of our asset strategy and commitment to increasing our exposure to high-specification floaters with industry-leading capabilities."
The statements described in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which could be made include, but are not limited to, estimated duration of customer contracts, shipyard construction commencement dates, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects. These include but are not limited to operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas and other factors, including those discussed in the company's most recent Form 10-K for the year ended December 31, 2012 and in the company's other filings with the 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 the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at www.deepwater.com.
This press release or referenced documents does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of Transocean Ltd. and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean Ltd.
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.
Transocean owns or has partial ownership interests in, and operates a fleet of, 79 mobile offshore drilling units consisting of 46 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment drilling rigs), 22 Midwater Floaters and 11 High-Specification Jackups. In addition, including the newbuild drillship announced today, we have seven Ultra-Deepwater Drillships and one High-Specification Jackup under construction.
For more information about Transocean, please visit the website www.deepwater.com.