Transocean Ltd. Announces Contract for Harsh Environment Semi-Submersible Transocean Norge

Rhea-AI Summary

Transocean Ltd. (NYSE: RIG) announced a significant contract for its Transocean Norge semi-submersible rig. Awarded by Wintershall Dea Norge and OMV Norge, the contract covers drilling 17 wells from 2023 to 2027, assuming all approvals are secured. The total backlog from this contract is projected at $437 million, based on an average dayrate of $408,000, with a firm term of 208 days contributing $72 million to backlog. Transocean holds a 33% interest in the rig through a joint venture.

Positive

• Contract worth $437 million in backlog, enhancing future revenue.
• Exclusive rights to drill for two reputable partners, Wintershall Dea Norge and OMV Norge.
• Average contract dayrate of $408,000 strengthens financial outlook.

Negative

• Contract subject to operator and government approvals, introducing uncertainty.
• Only a firm term of 208 days currently secured, limiting immediate revenue assurance.

STEINHAUSEN, Switzerland, Sept. 22, 2022 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE: RIG) announced today that the harsh environment semi-submersible, Transocean Norge, received a contract award from Wintershall Dea Norge and OMV Norge granting the exclusive right to drill all of the wells for their respective drilling campaigns starting in 2023 through 2027, subject to rig availability and other conditions.

The contract provides that the Transocean Norge will drill eleven wells for Wintershall Dea Norge and six wells for OMV Norge. A portion of this work is subject to operator and government approvals. Assuming that all approvals are received, the full contract period is 1,071 days at an average dayrate of $408,000 which would contribute $437 million in backlog, excluding bonuses and additional services. In addition, the contract contains additional fixed price option wells.

The current firm term is currently 208 days, which contributes approximately $72 million in backlog. Backlog estimates exclude any revenue associated with additional products and services or options that may be exercised as part of the contract.

Transocean owns a 33.0% interest in the Transocean Norge through a joint venture with Hayfin Capital Management LLP (“Hayfin”). Certain affiliates of Hayfin own the remaining 67.0% ownership interest.

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 deepwater and harsh environment drilling services, and believes that it operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in, and operates a fleet of 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters. In addition, Transocean is constructing two ultra-deepwater drillships.

For more information about Transocean, please visit: www.deepwater.com.

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 value of the new contract for Transocean Ltd. (RIG)?

The new contract is valued at $437 million in backlog.

Which companies awarded the contract to Transocean (RIG)?

The contract was awarded by Wintershall Dea Norge and OMV Norge.

How many wells will Transocean (RIG) drill under the new contract?

Transocean will drill a total of 17 wells, 11 for Wintershall Dea Norge and 6 for OMV Norge.

What is the average dayrate for the Transocean Norge contract?

The average dayrate for the contract is $408,000.

How long is the contract period for Transocean Ltd. (RIG)?

The full contract period is projected to be 1,071 days, subject to approvals.