Transocean Ltd. Announces Contract Awards and Extensions Totaling $488 Million

Rhea-AI Summary

Transocean Ltd. (NYSE: RIG) announced new contract awards and extensions for five drilling rigs, adding approximately $488 million to its firm backlog. Highlights include a three-well contract for the Deepwater Invictus in the U.S. Gulf of Mexico, worth $43 million, and a one-well contract for Transocean Barents in the U.K. North Sea, valued at $34 million. The Paul B. Loyd, Jr. contract was extended for eight P&A wells, contributing $48 million. The Transocean Norge contract with Wintershall DEA adds $331 million, while TotalEnergies exercised a one-well option for Development Driller III, adding $32 million.

Positive

• New contracts increase firm backlog by approximately $488 million.
• Deepwater Invictus contract in U.S. Gulf of Mexico valued at $43 million.
• Transocean Barents contract in U.K. North Sea adds $34 million.
• Extension of Paul B. Loyd, Jr. contract contributes $48 million.
• Increased backlog from Transocean Norge contract is $331 million.
• New contract with Development Driller III adds $32 million.

Negative

• None.

STEINHAUSEN, Switzerland, Jan. 04, 2023 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) today announced contract awards or extensions for five of its drilling rigs. Together, the fixtures represent approximately $488 million of firm backlog.

Deepwater Invictus, an ultra-deepwater drillship, was awarded a new three-well contract with an estimated 100-day duration in the U.S. Gulf of Mexico with an independent operator. The contract contributes an estimated $43 million in backlog and is expected to commence in direct continuation of the rig’s current program.

Transocean Barents, a harsh environment semi-submersible, was awarded a new one-well contract with an estimated 110-day duration in the U.K. North Sea with a major operator. The contract contributes an estimated $34 million in backlog and is expected to commence in the first quarter of 2023.

Additionally, Harbour Energy exercised the third option on its U.K. North Sea contract with Paul B. Loyd, Jr., a harsh environment semi-submersible, for eight P&A wells, adding an estimated $48 million in backlog. The additional term is expected to last 275 days and extends the contract to the third quarter of 2024.

In Norway, certain previously disclosed options under the Transocean Norge contract with Wintershall DEA and OMV have now been added to backlog. The incremental term is expected to last 773 days and contribute an estimated $331 million to backlog.

Finally, TotalEnergies exercised a one-well option on its contract with Development Driller III, an ultra-deepwater semi-submersible, working in Suriname. The incremental well is expected to last 90 days and contribute an estimated $32 million in backlog.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. Transocean specializes in technically demanding sectors of the global offshore drilling business with a particular focus on 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 38 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and 10 harsh environment floaters. In addition, Transocean is constructing one ultra-deepwater drillship and holds a partial ownership interest in a company that is constructing another ultra-deepwater drillship.

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 difficult to predict. As a result, actual results could differ materially from those indicated in 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, timing of the company’s newbuild deliveries, 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 success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, such as COVID-19, 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, 2021, 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 the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company 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, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be 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 total value of new contracts announced by Transocean (RIG) on January 4, 2023?

Transocean announced new contracts and extensions totaling approximately $488 million.

What are the details of the Deepwater Invictus contract by Transocean (RIG)?

The Deepwater Invictus was awarded a new three-well contract worth an estimated $43 million, expected to last about 100 days.

How much does the Transocean Barents contract contribute to the backlog?

The Transocean Barents contract contributes approximately $34 million to the backlog.

What is the significance of the Paul B. Loyd, Jr. contract extension for Transocean (RIG)?

The extension for the Paul B. Loyd, Jr. adds an estimated $48 million to the backlog for eight P&A wells.

What backlog addition comes from the Transocean Norge contract?

The Transocean Norge contract adds approximately $331 million to the backlog.

What value does the one-well option exercised by TotalEnergies add to Transocean's backlog?

The one-well option added by TotalEnergies contributes an estimated $32 million to the backlog.