Transocean Inc. Updates Status of Semisubmersible Rigs Transocean Marianas and Deepwater Nautilus Damaged During Recent Gulf of Mexico Hurricanes
HOUSTON--(BUSINESS WIRE)--Oct. 12, 2005--Transocean Inc.(NYSE:RIG) today reported that damage assessments of the mooredsemisubmersible rigs Transocean Marianas and Deepwater Nautilus, whichsustained damage during the recent hurricanes in the Gulf of Mexico,are substantially complete and an estimate of repair time has beenmade for each unit.
The company reported on September 27, 2005 that the TransoceanMarianas was forced off its drilling location during Hurricane Rita,causing damage to the rig's mooring system. Further investigation alsorevealed damage to the unit's thrusters mounted beneath its hull andsome hull damage, which caused the partial flooding of one column. TheTransocean Marianas is scheduled to enter a shipyard in Brownsville,Texas, as early as this week where repairs to the unit are anticipatedto take from three to four months. The company expects the rig toreturn to service in the first quarter of 2006.
The company reported on August 31, 2005 that the DeepwaterNautilus sustained damage to its mooring system and lost approximately3,200 feet of marine riser and a portion of its subsea well controlsystem during Hurricane Katrina. The rig sustained additional damage,primarily to thrusters mounted beneath its hull, when it was groundedfollowing the failure of a tow line utilized by a vessel engaged intowing the rig to a location away from the projected path of HurricaneRita. The Deepwater Nautilus is expected to mobilize over the nextweek to a location in the Gulf of Mexico to attempt to retrieve theportion of its subsea well control system lost during HurricaneKatrina. Assuming the subsea equipment is retrieved and is functional,the rig is expected to utilize a pre-laid mooring system to carry outdrilling operations in the Gulf of Mexico while awaiting the eventualreplacement of damaged mooring system components with items currentlyon order. The company expects the rig to experience approximately 30days of out-of-service time during the fourth quarter of 2005, withapproximately 60 days of additional out-of-service time requiredduring the first half of 2006 to complete all repairs to the rig. Themarine riser lost during Hurricane Katrina has been replaced.
The company's insurance program covers physical damage to itsfleet and includes a $10 million deductible per event, plus a $20million annual aggregate deductible. Transocean does not carryinsurance coverage for loss of revenue.
Statements regarding rig damage, commencement of repair work,recommencement of operations, retrieval of subsea well control systemcomponents, estimated rig out-of-service time, as well as any otherstatements that are not historical facts, are forward-lookingstatements 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 oiland 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 risks oruncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 92 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, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $18 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.