Transocean Inc. Announces Contract Awards for Two High-Specification Semisubmersible Rigs
HOUSTON--(BUSINESS WIRE)--April 28, 2005--Transocean Inc. (NYSE:RIG) today announced that BP has awarded contracts for two of the company's High-Specification semisubmersible rigs, the Deepwater Horizon and the Transocean Marianas.
The Fifth-Generation, dynamically positioned semisubmersible rig Deepwater Horizon has been awarded a five-year contract for drilling operations in the U.S. Gulf of Mexico. The five-year contract is expected to commence during September 2005, in direct continuation of the rig's current contract, also with BP in the U.S. Gulf of Mexico. The initial two years of the contract could generate revenues of approximately $200 million. The dayrate for the final three years of the contract will generally be set using a quarterly average of the stated contract dayrates on the company's other Fifth-Generation, dynamically positioned rigs operating in the U.S. Gulf of Mexico.
The Transocean Marianas has been awarded an estimated 340-day contract for drilling operations in the U.S. Gulf of Mexico, where the rig is currently operating. The contract is expected to commence in January 2006. Revenues of approximately $85 million could be generated over the estimated 340-day contract period.
The Deepwater Horizon and Transocean Marianas are two of 32 High-Specification rigs in the Transocean Inc. fleet, 13 of which are Fifth-Generation units. The Deepwater Horizon entered active service in September 2001, following its construction in Ulsan, South Korea, and it is capable of working in water depths of up to 10,000 feet. The rig currently holds the world water depth drilling record for a semisubmersible rig at 9,576 feet. The Transocean Marianas, which was upgraded to its current specifications in 1998, is a moored semisubmersible rig capable of operating in water depths of up to 7,000 feet.
Statements regarding contract duration, contract commencement date, contract revenues, contract dayrates, 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 dayrate 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.
Transocean Inc. is the world's largest offshore drilling contractor with a fleet of 93 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 32 High-Specification Floaters (semisubmersibles and drillships), 24 Other Floaters, 26 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $15 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
CONTACT: Transocean Inc., Houston
Analyst Contact: Jeffrey L. Chastain, 713-232-7551
Media Contact: Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.