HOUSTON - Transocean Ltd. said Friday that it was awarded 10-year contracts for four new drillships by oil giant Royal Dutch Shell PLC, which will bring about $7.6 billion in revenue.
The contracts are expected to start in 2015 and 2016 after the drillships, designed to operate in ultra-deep water, are built. The construction of the vessels will add $3 billion to Transocean's capital budget, the company said.
The move underscores the massive, long-term investments needed to tap the world's remaining oil riches and the fact that oil giants are bullish enough about future prices that they are willing to engage in these large commitments. The news comes a day after Transocean, the world's largest deepwater driller, received an injunction from a Brazilian court ordering it to stop activities in the South American country, where 10 of its rigs, representing 11% of its revenue for the first half of 2012, are under contract.
Copyright (c) 2012 Dow Jones & Company, Inc.
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