uploads///Backlog

A Look at Transocean’s Recent Contracts

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Nov. 20 2020, Updated 2:23 p.m. ET

Fleet status report

Transocean (RIG) released its quarterly fleet status update on February 9, 2017. Transocean’s backlog was $11.3 billion, compared with $12.2 billion in its October fleet status report. In this article, we’ll take a look at contract updates between these two report dates.

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Contract updates

  • On December 31, 2016, Transocean’s newbuild ultra-deepwater drillship, the Deepwater Conqueror, commenced its five-year contract. The rig is working in the US Gulf of Mexico at a day rate of $589,000. However, the same client has exercised its option to terminate the contract on ultra-deepwater drillship Deepwater Asgard, effective January 2017. The rig had been contracted until June 2017 at a day rate of $615,000. Transocean will be paid $79 million towards the early termination. This amount represents an operating day rate minus operating costs for the remaining contract term.
  • Dhirubhai Deepwater was awarded a three-well contract.
  • Transocean was granted a contract extension of 30 days for its rig, the Paul Loyd.
  • Transocean Spitsbergen was awarded a one-well option.

Backlog

Most offshore drillers (OIH) have yet to release their earnings for the quarter that ended on December 31, 2016. To learn about how Transocean’s backlog in the previous quarter compares with Seadrill’s (SDRL), Diamond Offshore Drilling’s (DO), Ocean Rig’s (ORIG), Noble’s (NE), and Atwood Oceanics’ (ATW), read Offshore Drilling Companies: A Comparative Analysis.

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