BP Extends Contracts for Two of Transocean's Deepwater Rigs

Transocean Inc. reports that BP has extended the contracts on two of the company's high-specification deepwater rigs, the drillship Discoverer Enterprise and the semisubmersible Deepwater Horizon.

The Discoverer Enterprise contract extension is for three years and is expected to commence during December 2004. Revenues of approximately $200 million could be generated over the three-year extension. The contract extension for the Deepwater Horizon is for one year and is expected to commence in September 2004, with revenues of approximately $60 million possible over the one-year extension. The Discoverer Enterprise and Deepwater Horizon, both currently operating in the U.S. Gulf of Mexico, have been under contract to BP since the rigs began service in December 1999 and September 2001, respectively, and represent two of the company's 32 High-Specification Floaters, 28 of which are capable of operating in water depths of 4,500 feet or greater. Both rigs are equipped with dynamic positioning technology for maintaining station and are capable of drilling in water depths of up to 10,000 feet. The Discoverer Enterprise is equipped with the company's patented dual-activity drilling technology, which saves time by allowing drilling tasks to be performed in parallel, rather than sequentially as with conventional offshore drilling rigs.