Also, the company reported that its Board of Directors has authorized an expansion of Transocean's revolving credit facility to $1 billion from the previous amount of $500 million.
Robert L. Long, President and Chief Executive Officer of Transocean Inc., commented, "Our decision to increase the company's share repurchase program to $4.0 billion reflects the substantial increase in the company's contract backlog, which currently totals an estimated $17 billion compared to approximately $8 billion in October 2005 and takes into consideration the improved outlook for reinvestment opportunities. To date, we have signed contracts for the construction of an enhanced Enterprise-class deepwater drillship and two significant upgrades of our Sedco 700-series semisubmersible rigs totaling in excess of $1.2 billion in capital investment. In addition, we remain encouraged by the prospects for further deepwater construction programs expected to be awarded in the near future and are hopeful that the company may secure at least one additional newbuild opportunity in the coming months. We believe the size and timing of the revised repurchase program allows the company to maintain the financial flexibility necessary to capture these potential growth opportunities."
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