Transocean Bags $1B+ In Contract Awards for 2 Drillships

Transocean Ltd. (NYSE: RIG) announced $1.04 billion in contract awards for two ultra-deepwater drillships this week.

The company revealed that the Deepwater Corcovado and Deepwater Orion had secured work offshore Brazil with a “national oil company”. Deepwater Corcovado was awarded a four-year deal, which Transocean outlined contributes an estimated $583 million in backlog. This deal is expected to begin in the third quarter of 2023 in direct continuation of the rig’s current contract, Transocean revealed.

The Deepwater Orion was awarded a three-year contract, which Transocean said contributes an estimated $456 million in backlog. This deal is expected to start during the fourth quarter of next year, Transocean highlighted.

In its latest quarterly fleet status report, which was released back in October, Transocean revealed that the Deepwater Conqueror had been awarded a two-year contract in the U.S. Gulf of Mexico at $440,000 per day. The report also outlined that the Deepwater Asgard had been awarded a one-well contract in the U.S. Gulf of Mexico at $395,000 per day, plus a one-well option, as well as a one-year contract in the U.S. Gulf of Mexico at $440,000 per day.

In addition, the report highlighted that the Petrobras 10000 had been awarded a 5.8-year contract in Brazil at $399,000 per day, escalating annually to $462,000 per day, the Development Driller III had been a warded a one-well contract in Suriname at $345,000 per day, plus two one-well options, and that the Transocean Norge had been awarded a 17-well contract in Norway at dayrates between $350,000 and $430,000.

The report also revealed that the Dhirubhai Deepwater KG1 had seen a customer exercise a one-well option in India at $330,000 per day and that the Paul B Loyd Jr had seen a customer exercise two 100-day options in the U.K. at $175,000 per day. A customer also exercised a one-well option in Norway at $316,000 per day for the Transocean Spitsbergen, the report outlined.

Transocean revealed in its latest fleet status report that the aggregate incremental backlog associated with the deals mentioned above was approximately $1.6 billion. As of October 13, the company’s total backlog was approximately $7.3 billion, Transocean highlighted.

In its third quarter results statement, which was released last month, Transocean revealed that total contract drilling revenues were $691 million. This compared to $692 million in the second quarter of 2022, the company pointed out. Net loss attributable to controlling interest was $28 million, compared to $68 million in the second quarter of 2022, the company revealed.

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