Transocean Ltd. Announces $123 Million Ultra-Deepwater Drillship Contract
Transocean (NYSE: RIG) has secured a significant contract for its ultra-deepwater drillship, Dhirubhai Deepwater KG1. The contract, awarded by Reliance Industries , is for six wells offshore India and is expected to contribute approximately $123 million to Transocean's backlog. The estimated 300-day program is set to commence in the second quarter of 2026.
The award includes multiple options, which, if exercised, could extend the rig's operations in India through the end of 2029. This contract represents a notable addition to Transocean's order book and demonstrates continued demand for ultra-deepwater drilling services in the region.
Transocean (NYSE: RIG) ha ottenuto un contratto significativo per la sua trivella ultra-profondità, Dhirubhai Deepwater KG1. Il contratto, assegnato da Reliance Industries, riguarda sei pozzi al largo dell'India ed è previsto che contribuisca con circa 123 milioni di dollari al portafoglio ordini di Transocean. Il programma di 300 giorni dovrebbe iniziare nel secondo trimestre del 2026.
Il premio include diverse opzioni, che, se esercitate, potrebbero estendere le operazioni della piattaforma in India fino alla fine del 2029. Questo contratto rappresenta un'aggiunta notevole al portafoglio ordini di Transocean e dimostra una continua domanda per i servizi di perforazione ultra-profonda nella regione.
Transocean (NYSE: RIG) ha obtenido un contrato significativo para su plataforma de perforación ultraprofundidad, Dhirubhai Deepwater KG1. El contrato, otorgado por Reliance Industries, es para seis pozos en alta mar en India y se espera que contribuya aproximadamente con 123 millones de dólares a la cartera de pedidos de Transocean. Se prevé que el programa de 300 días comience en el segundo trimestre de 2026.
El premio incluye múltiples opciones que, si se ejercen, podrían extender las operaciones de la plataforma en India hasta la final de 2029. Este contrato representa una adición notable al libro de pedidos de Transocean y demuestra una continua demanda de servicios de perforación ultraprofundidad en la región.
트랜스오션 (NYSE: RIG)은 초심층 드릴선 디루바이 딥워터 KG1에 대한 중요한 계약을 체결했습니다. 이 계약은 릴라이언스 인더스트리즈에 의해 수여되었으며, 인도 해상에서 여섯 개의 유정을 대상으로 하며, 트랜스오션의 백로그에 약 1억 2천 3백만 달러를 기여할 것으로 예상됩니다. 예상되는 300일 프로그램은 2026년 2분기에 시작될 예정입니다.
이 계약에는 여러 옵션이 포함되어 있으며, 만약 행사된다면 인도에서의 플랫폼 운영을 2029년 말까지 연장할 수 있습니다. 이 계약은 트랜스오션의 주문서에 중요한 추가 사항을 나타내며, 이 지역에서 초심층 드릴링 서비스에 대한 지속적인 수요를 보여줍니다.
Transocean (NYSE: RIG) a obtenu un contrat significatif pour son navire de forage ultraprofond, Dhirubhai Deepwater KG1. Le contrat, attribué par Reliance Industries, concerne six puits au large des côtes de l'Inde et devrait contribuer environ 123 millions de dollars au carnet de commandes de Transocean. Le programme de 300 jours doit commencer au deuxième trimestre de 2026.
Le prix comprend plusieurs options qui, si elles sont exercées, pourraient prolonger les opérations de la plateforme en Inde jusqu'à fin 2029. Ce contrat représente un ajout notable au carnet de commandes de Transocean et témoigne d'une demande continue de services de forage ultraprofund dans la région.
Transocean (NYSE: RIG) hat einen bedeutenden Vertrag für sein ultratiefes Bohrschiff Dhirubhai Deepwater KG1 gesichert. Der Vertrag, der von Reliance Industries vergeben wurde, umfasst sechs Brunnen vor der Küste Indiens und wird voraussichtlich etwa 123 Millionen US-Dollar zum Auftragsbestand von Transocean beitragen. Das geschätzte 300-tägige Programm soll im zweiten Quartal 2026 beginnen.
Die Auszeichnung umfasst mehrere Optionen, die, falls sie ausgeübt werden, die Betriebszeiten der Bohrinsel in Indien bis zum Ende 2029 verlängern könnten. Dieser Vertrag stellt eine bemerkenswerte Ergänzung zum Auftragsbuch von Transocean dar und zeigt eine anhaltende Nachfrage nach ultratiefen Bohrdienstleistungen in der Region.
- Secured a $123 million contract for ultra-deepwater drillship
- 300-day program adds significant backlog to Transocean's order book
- Contract includes multiple options that could extend operations through 2029
- Demonstrates continued demand for ultra-deepwater drilling services
- Contract commencement not until second quarter of 2026, indicating potential near-term revenue gaps
Insights
This contract award represents a significant boost to Transocean's backlog, adding
The timing of the contract, starting in Q2 2026, provides Transocean with future revenue visibility and operational planning advantages. The inclusion of multiple options extending potentially to 2029 offers long-term stability and the possibility of sustained cash flow from this asset.
While positive, investors should note that this contract doesn't address Transocean's near-term financial challenges or impact its current debt load. The company's ability to secure work for its fleet in the interim remains important for its financial health.
This contract with Reliance Industries signals continued demand for ultra-deepwater drilling in the Indian offshore market. It's a positive indicator for the global offshore drilling sector, suggesting sustained investment in deepwater exploration and production despite fluctuations in oil prices.
The long-term nature of the contract, with options extending to 2029, reflects confidence in the future of offshore oil and gas development. This aligns with projections of increasing energy demand in India, one of the world's fastest-growing major economies.
However, investors should consider the evolving energy landscape. While this contract demonstrates ongoing demand for fossil fuels, the long-term transition to renewable energy could impact future contract availability and rates in the ultra-deepwater drilling market.
STEINHAUSEN, Switzerland, Sept. 04, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) (“Transocean”) today announced that Reliance Industries Limited awarded a binding Letter of Award for the Dhirubhai Deepwater KG1 for six wells offshore India. The estimated 300-day program is expected to commence in the second quarter of 2026 and is estimated to contribute approximately
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services and operates the highest specification floating offshore drilling fleet in the world.
Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.
Forward-Looking Statements
The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are beyond our control, and in many cases, cannot be predicted. As a result, actual results could differ materially from those indicated by these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, the cost and timing of mobilizations and reactivations, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company's other filings with the 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. All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement. We expressly disclaim any obligations or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations or beliefs with regard to the statement or any change in events, conditions or circumstances on which any forward-looking statement is based, except as required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company’s website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.
Analyst Contact:
Alison Johnson
+1 713-232-7214
Media Contact:
Pam Easton
+1 713-232-7647
FAQ
What is the value of Transocean's new contract for the Dhirubhai Deepwater KG1 drillship?
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