Transocean Inc. Announces Second Sedco 700-Series Upgrade Following Commitment from Chevron
HOUSTON--(BUSINESS WIRE)--Nov. 22, 2005--Transocean Inc.(NYSE:RIG) today announced that it has entered into an agreement withChevron Corp (NYSE:CVX) for the upgrade of one of Transocean's Sedco700-series semisubmersible rigs. Under the terms of the drillingcontract, Chevron will contract the rig over a primary term of threeyears, but has the right to convert the contract term to five years.Revenues could total approximately $385 million over the three-yearprimary term or approximately $550 million should the contract beconverted to a five-year term. Estimated revenues exclude revenues formobilization, demobilization and client reimburseables.
The Sedco 700-series unit upgrade is expected to commence in thesecond quarter of 2007 at a shipyard yet to be determined. The cost ofthe upgrade is estimated to be $300 million and includes dynamicpositioning station keeping and water-depth drilling capability up toa maximum of 6,500 feet.
The rig is expected to complete necessary shipyard work by thefirst quarter of 2008 and then mobilize to its initial drillinglocation where it will commence operations on Chevron's Frade projectoffshore Brazil after rig commissioning and customer acceptance.Chevron reserves the right to terminate the contract should theshipyard work not be completed by December 31, 2008.
The contract is the second Sedco 700-series upgrade announced byTransocean in the last month. Once completed, the two upgraded Sedco700-series units will increase the company's High-SpecificationFloaters fleet to 34 units, with 30 of the units capable of operatingin water depths of 4,500 feet and greater.
Statements regarding contract duration, operational commencementdate, revenues, upgrade costs, shipyard commencement and completion,technical specifications, as well as any other statements that are nothistorical facts, are forward-looking statements that involve certainrisks, uncertainties and assumptions. These include but are notlimited to operating hazards and delays, actions by customers andother third parties, the future price of oil and gas, the actualrevenues earned and other factors detailed in the company's mostrecent Form 10-K and other filings with the Securities and ExchangeCommission (SEC), which are available free of charge on the SEC'swebsite 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 $20 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.