Transocean Inc. Awarded Contracts for Construction of Enhanced Enterprise-Class Drillship and Semisubmersible Rig Henry Goodrich
HOUSTON, Jun 22, 2006 (BUSINESS WIRE) -- Transocean Inc. (NYSE:RIG) today announced that Hydro(NYSE:NHY) has awarded the company a drilling contract for theconstruction of an enhanced Enterprise-class drillship plus amulti-year contract award for the High-Specification semisubmersiblerig Henry Goodrich. Combined revenues possible from the two contractawards total approximately $950 million over six years.
The enhanced Enterprise-class drillship is being designed toinclude the most advanced drilling capabilities in the offshoredrilling industry. Hydro has awarded the company a four-year drillingcontract, which is expected to commence by mid-2009, followingshipyard construction, sea trials, mobilization to the U.S. Gulf ofMexico and customer acceptance. The contract commencement date iscontingent on vendor performance and other factors. Revenues ofapproximately $694 million are possible over the four-year contractperiod, excluding revenues for mobilization, demobilization and clientreimbursables.
Construction of the dynamically positioned, double-hull drillshipis expected to take place at the Daewoo Shipbuilding and MarineEngineering Co., Ltd. (DSME) yard in Okpo, South Korea, with anestimated total capital expenditure of approximately $615 million,excluding capitalized interest. The rig will feature Transocean'spatented dual-activity drilling technology, allowing for paralleldrilling operations designed to save time and money in deepwater wellconstruction, compared with conventional rigs. The dual-activitytechnology, along with a new and enhanced top drive system, anexpanded high-pressure mud-pump system and other unique features ofthe drillship target the drilling of wells up to 40,000 feet of totaldepth. The rig will have a variable deckload of more than 20,000metric tons and is designed to drill in water depths of up to 12,000feet. The enhanced Enterprise-Class drillship will be the second unitto be constructed for Transocean in the DSME yard, following thepreviously awarded five-year contract from Chevron Corporation for theDiscoverer Clear Leader. Both units are enhanced versions of thecompany's three predecessor Enterprise-class drillships, which haveset drilling records in recent years, including the water-depthdrilling record of 10,011 feet held by the Discoverer Deep Seas.
In addition, Hydro has awarded the semisubmersible rig HenryGoodrich a two-year contract for drilling operations in the U.S. Gulfof Mexico. The contract is expected to commence in February 2007,following the completion of a current contract commitment offshoreeastern Canada. The rig's water depth capability will be improved to5,000 feet with the purchase of additional equipment and when combinedwith a client-provided pre-laid mooring system. Revenues ofapproximately $256 million are possible over the two-year contractperiod, excluding revenues for mobilization, demobilization, contractpreparation and client reimbursables.
Statements regarding the enhanced Enterprise-class rig, operatingspecifications, contract durations, contract commencement dates,revenues, costs, duration and location of construction, timing andduration of maintenance and mobilization, area of operations, as wellas any other statements that are not historical facts, areforward-looking statements that involve certain risks, uncertaintiesand assumptions. These include but are not limited to operatinghazards and delays, actions by customers and other third parties,factors affecting the duration of contracts including well-in-progressprovisions, the actual amount of downtime, factors resulting inreduced applicable dayrates, the future price of oil and gas and otherfactors detailed in the company's most recent Form 10-K and otherfilings with the Securities and Exchange Commission (SEC), which areavailable free of charge on the SEC's website at www.sec.gov. Shouldone or more of these risks or uncertainties materialize, or shouldunderlying 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 33High-Specification Floaters (semisubmersibles and drillships), 21Other Floaters, 25 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $23 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe symbol \"RIG.\"
SOURCE: Transocean Inc.
Transocean Inc.Analyst ContactJeffrey L. Chastain, 713-232-7551orMedia ContactGuy A. Cantwell, 713-232-7647