Transocean Inc. to Reactivate Semisubmersible Rig C. Kirk Rhein with Two-Year Contract Award
HOUSTON--(BUSINESS WIRE)--April 17, 2006--Transocean Inc.(NYSE:RIG) today announced that Reliance Industries Limited hasawarded a two-year contract for the semisubmersible rig C. Kirk Rhein,Jr. for drilling operations offshore India. The contract is expectedto commence in December 2006 following the completion of areactivation program, which has recently begun. The reactivationprogram does not involve an upgrade of the rig's current capabilities.Revenues that could be generated over the two-year contract periodtotal an estimated $248 million, excluding revenues for mobilization,demobilization and client reimburseables.
The C. Kirk Rhein, Jr., which entered active service in 1976 andwas upgraded to its current specifications in 1997, has been idle inthe U.S. Gulf of Mexico since March 2002. The company estimates a costof $38 million to reactivate and mobilize the rig, comprised ofapproximately $22 million of period expenses, to be recognized asincurred and largely expected during the second and third quarters of2006, deferred expenses of $8 million, to be amortized over thetwo-year contract, and capital expenditures of $8 million, to bedepreciated over the remaining useful life of the rig. The C. KirkRhein, Jr. is the third reactivation of a Transocean Other Floater(mid-water unit) over the past 10 months, following the commencementof programs during the second half of 2005 for the semisubmersiblerigs Transocean Prospect and Transocean Winner, which are expected tobe completed in June and August of 2006, respectively.
Statements regarding contract duration, contract commencementdate, revenues, cost and timing of completion of reactivationprograms, 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 88 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), 22Other Floaters, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $26 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"
CONTACT: Transocean Inc. Jeffrey L. Chastain, 713-232-7551 (Analyst Contact) or Guy A. Cantwell, 713-232-7647 (Media Contact) SOURCE: Transocean Inc.