Transocean Announces Approval for Contracts on Five Brazil-Based Rigs
HOUSTON--(BUSINESS WIRE)--June 22, 2005--Transocean Inc.(NYSE:RIG) today announced that the board of directors of PetroleoBrasileiro S.A. (Petrobras) has approved contract awards for five ofthe company's rigs totaling 19 rig years and an estimated $985 millionin revenues, excluding revenues for mobilization, demobilization,performance bonus opportunities and client reimbursables. Thecontracts were approved for the drillships Deepwater Navigator andPeregrine I and semisubmersible rigs Sedco 707, Sedco 710 andTransocean Driller. Each rig is currently located in Brazil and all ofthe units with the exception of the Peregrine I are currently undercontract to Petrobras.
The contract approved for the Deepwater Navigator, a dynamicallypositioned drillship capable of drilling in water depths of up to2,000 meters, has a four-year term which is expected to commence inOctober 2006, in direct continuation of the rig's current and expectedcontract commitments. Estimated revenues of $263 million could begenerated over the four-year contract period.
A three-year contract was approved for the Peregrine I, adynamically positioned drillship capable of drilling in water depthsof up to 1,500 meters and is expected to commence in November 2005following an estimated 120-day planned upgrade in a shipyard inBrazil, where the rig is currently idle. Estimated revenues of $123million could be generated over the three-year contract period.Additional revenues are possible through a performance bonusopportunity of up to 20%.
The contract approved for the Sedco 707, a dynamically positionedsemisubmersible rig capable of drilling in water depths of up to 2,000meters, is for four-years and should commence in January 2006following the completion of the rig's current contract commitment andan estimated 60-day planned shipyard program. Estimated revenues of$263 million could be generated over the four-year contract period.
A four-year contract for the Sedco 710, a dynamically positionedsemisubmersible rig capable of drilling in water depths of up to 1,200meters, was approved and should commence in October 2006 in directcontinuation of the rig's current contract commitment. Estimatedrevenues of $175 million could be generated over the four-yearcontract period. Additional revenues are possible through aperformance bonus opportunity of up to 10%.
The contract approved for the Transocean Driller, asemisubmersible rig capable of drilling in water depths of up to 1,050meters, has a four-year term which is expected to commence in August2006 in direct continuation of the rig's current contract commitment.Estimated revenues of approximately $161 million could be generatedover the four-year contract period. Additional revenues are possiblethrough a performance bonus opportunity of up to 10%.
The approved contracts have not yet been executed. Transoceanexpects that the contracts will be signed in the next 30 to 60 days.
The Deepwater Navigator, Peregrine I, Sedco 707 and Sedco 710 arefour of the 32 High-Specification rigs in the Transocean Inc. fleet,28 of which are deepwater rigs, capable of drilling in water depths of1,370 meters and greater. The Transocean Driller is one of 24 OtherFloaters in the company's fleet that service the mid-water segment ofthe market.
Statements regarding contract duration, contract commencementdate, contract revenues, duration of planned shipyard programs, bonusopportunities, contract awards, the execution of the approvedcontracts, as well as any other statements that are not historicalfacts, are forward-looking statements that involve certain risks,uncertainties and assumptions. These include but are not limited tooperating hazards and delays, actions by customers and other thirdparties, the future price of oil and gas, the actual revenues earnedand other factors detailed in the company's most recent Form 10-K andother filings with the Securities and Exchange Commission (SEC), whichare available free of charge on the SEC's website at www.sec.gov.Should one or more of these risks or uncertainties materialize, orshould underlying assumptions prove incorrect, actual results may varymaterially from those indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 93 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 32High-Specification Floaters (semisubmersibles and drillships), 24Other Floaters, 26 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $17 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"
CONTACT: Transocean Inc., Houston Analyst Contact: Jeffrey L. Chastain, 713-232-7551 or Media Contact: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.