Transocean Inc. Fifth-Generation Drillship Deepwater Discovery Awarded Multi-Year Contract
HOUSTON--(BUSINESS WIRE)--Feb. 3, 2006--Transocean Inc. (NYSE:RIG) today announced that Devon Energy Corporation (NYSE:DVN) has awarded the company's Fifth-Generation, ultra-deepwater drillship Deepwater Discovery a minimum three-year contract for drilling operations offshore Brazil. Under the terms of the drilling contract, which is currently expected to commence in November 2008, Devon has the right within one year from signing of the contract to convert the primary term from three years to four or five years. Revenues of approximately $520 million to $775 million could be generated over a primary contract term of three to five years in duration, excluding revenues for mobilization, demobilization and client reimburseables.
The Deepwater Discovery is currently under contract to an operator group and drilling offshore Nigeria, Sao Tome and Principe in the Joint Development Zone. Upon completion of the existing contract, currently expected during August 2006, the rig will enter a shipyard for approximately 60 days, followed by the commencement of a two-year contract with Total SA (NYSE:TOT) on Total's Akpo field development offshore Nigeria. The rig is one of 32 High-Specification Floaters in the Transocean Inc. fleet, 13 of which are Fifth-Generation Deepwater Floaters. The Deepwater Discovery, which is capable of operating in water depths up to 10,000 feet, entered service in 2000 following its construction at Samsung Heavy Industries shipyard in Koje, South Korea.
Statements regarding contract durations, contract commencement dates, revenues, timing and duration of shipyards, 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, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, the future price of oil and gas 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 90 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), 23 Other Floaters, 25 Jackup Rigs and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization in excess of $25 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 or Media Contact: Guy A. Cantwell, 713-232-7647 SOURCE: Transocean Inc.