Transocean Ltd. Announces $232 Million Ultra-Deepwater Drillship Contract
Transocean (NYSE: RIG) has secured a significant contract for its ultra-deepwater drillship, the Deepwater Atlas. The agreement, valued at approximately $232 million, is with bp for operations in the U.S. Gulf of Mexico. The contract spans 365 days and is set to begin in the second quarter of 2028. Additionally, the contract includes a provision for a 365-day option, potentially extending the engagement. This development represents a substantial addition to Transocean's backlog, reinforcing its position in the ultra-deepwater drilling market.
Transocean (NYSE: RIG) ha ottenuto un contratto significativo per il suo drillship ultra-profondi, il Deepwater Atlas. L'accordo, del valore di circa 232 milioni di dollari, è con bp per operazioni nel Golfo del Messico degli Stati Uniti. Il contratto ha una durata di 365 giorni e dovrebbe iniziare nel secondo trimestre del 2028. Inoltre, il contratto include una clausola per un'opzione di 365 giorni, che potrebbe estendere l'impegno. Questa evoluzione rappresenta un'aggiunta sostanziale al backlog di Transocean, rafforzando la sua posizione nel mercato delle perforazioni ultra-profonde.
Transocean (NYSE: RIG) ha asegurado un contrato importante para su buque perforador ultraprofundidad, el Deepwater Atlas. El acuerdo, valorado en aproximadamente 232 millones de dólares, es con bp para operaciones en el Golfo de México de EE. UU. El contrato abarca 365 días y está programado para comenzar en el segundo trimestre de 2028. Además, el contrato incluye una cláusula para una opción de 365 días, que podría extender el compromiso. Este desarrollo representa una adición sustancial al backlog de Transocean, reforzando su posición en el mercado de perforación ultraprofundidad.
트랜스오션 (NYSE: RIG)은 초심해 굴착선인 Deepwater Atlas를 위한 중요한 계약을 체결했습니다. 이 계약은 약 2억 3천2백만 달러의 가치를 지니며, bp와 함께 미국 멕시코만에서의 작업을 위한 것입니다. 계약 기간은 365일이며, 2028년 2분기에 시작될 예정입니다. 또한, 계약에는 연장 가능성이 있는 365일 옵션 조항이 포함되어 있습니다. 이 개발은 트랜스오션의 백로그에 상당한 추가를 나타내며, 초심해 굴착 시장에서의 입지를 강화합니다.
Transocean (NYSE: RIG) a sécurisé un contrat majeur pour son navire de forage ultra-profond, le Deepwater Atlas. L'accord, d'une valeur d'environ 232 millions de dollars, est avec bp pour des opérations dans le golfe du Mexique aux États-Unis. Le contrat s'étend sur 365 jours et devrait commencer au deuxième trimestre de 2028. De plus, le contrat inclut une clause pour une option de 365 jours, permettant potentiellement de prolonger l'engagement. Ce développement représente un ajout substantiel au carnet de commandes de Transocean, renforçant sa position sur le marché du forage ultra-profond.
Transocean (NYSE: RIG) hat einen bedeutenden Vertrag für sein Ultra-Tiefsee-Bohrschiff, die Deepwater Atlas, gesichert. Der Vertrag, der einen Wert von etwa 232 Millionen Dollar hat, ist mit bp für Operationen im Golf von Mexiko der USA. Der Vertrag hat eine Laufzeit von 365 Tagen und soll im zweiten Quartal 2028 beginnen. Darüber hinaus enthält der Vertrag eine Klausel für eine 365-tägige Option, die die Verpflichtung verlängern könnte. Diese Entwicklung stellt eine wesentliche Ergänzung des Backlogs von Transocean dar und stärkt seine Position im Markt für Ultra-Tiefsee-Bohrungen.
- Secured a $232 million contract for the Deepwater Atlas
- Contract duration of 365 days with an option for an additional 365 days
- Significant addition to the company's backlog
- Contract with a major oil company (bp) in a key offshore region
- Contract commencement is not until Q2 2028, indicating a long wait for revenue realization
- No additional services included in the contract, potentially limiting revenue opportunities
Insights
The $232 million contract for Transocean's Deepwater Atlas represents a significant boost to the company's backlog. This 365-day agreement, with an option for another year, provides stable revenue visibility extending into 2028. For investors, this demonstrates Transocean's ability to secure long-term contracts in the competitive ultra-deepwater drilling market.
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However, investors should note the extended time gap before contract commencement, which may impact near-term financial performance. The lack of additional services in the contract might limit upside potential but also reduces operational risks.
This contract signals a positive outlook for the ultra-deepwater drilling market, particularly in the U.S. Gulf of Mexico. BP's commitment to a long-term contract starting in 2028 indicates confidence in the region's future productivity and economic viability. This could stimulate further investment and activity in the area, benefiting the entire offshore services sector.
The timing of the contract is intriguing, as it suggests oil majors are securing rig capacity well in advance, possibly anticipating a tighter market for high-specification units. This forward-looking approach could lead to a competitive environment for rig bookings, potentially driving up day rates across the industry.
Investors should monitor how this contract influences market dynamics, as it may encourage other operators to lock in long-term agreements, potentially reducing available rig supply and supporting higher day rates in the coming years.
STEINHAUSEN, Switzerland, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) (“Transocean”) today announced a 365-day contract for the Deepwater Atlas with bp in the U.S. Gulf of Mexico. The contract also provides for a 365-day option. The program is expected to commence in the second quarter of 2028 and 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 Deepwater Atlas?
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