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 awardedthe company's Fifth-Generation, ultra-deepwater drillship DeepwaterDiscovery a minimum three-year contract for drilling operationsoffshore Brazil. Under the terms of the drilling contract, which iscurrently expected to commence in November 2008, Devon has the rightwithin one year from signing of the contract to convert the primaryterm from three years to four or five years. Revenues of approximately$520 million to $775 million could be generated over a primarycontract term of three to five years in duration, excluding revenuesfor mobilization, demobilization and client reimburseables.
The Deepwater Discovery is currently under contract to an operatorgroup and drilling offshore Nigeria, Sao Tome and Principe in theJoint Development Zone. Upon completion of the existing contract,currently expected during August 2006, the rig will enter a shipyardfor approximately 60 days, followed by the commencement of a two-yearcontract with Total SA (NYSE:TOT) on Total's Akpo field developmentoffshore Nigeria. The rig is one of 32 High-Specification Floaters inthe Transocean Inc. fleet, 13 of which are Fifth-Generation DeepwaterFloaters. The Deepwater Discovery, which is capable of operating inwater depths up to 10,000 feet, entered service in 2000 following itsconstruction at Samsung Heavy Industries shipyard in Koje, SouthKorea.
Statements regarding contract durations, contract commencementdates, revenues, timing and duration of shipyards, as well as anyother statements 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, factors affecting theduration of contracts including well-in-progress provisions, theactual amount of downtime, factors resulting in reduced applicabledayrates, the future price of oil and gas and other factors detailedin the company's most recent Form 10-K and other filings with theSecurities and Exchange Commission (SEC), which are available free ofcharge on the SEC's website at www.sec.gov. Should one or more ofthese risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with a fleet of 90 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), 23Other Floaters, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $25 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.