Transocean Contract Backlog Grows by $353MM



Transocean Contract Backlog Grows by $353MM
New contracts make up two-thirds of additional backlog since October.

Transocean Ltd. reported Wednesday that it has won $352.9 million in new rig contracts and options exercised by customers since issuing its last quarterly fleet status report on Oct. 17, 2019.

By comparison, the company posted an approximately $75 million increase in contract backlog in the October report.

In a written statement emailed to Rigzone, Transocean cast the development as a clear sign of ongoing improvement in the offshore drilling market.

“Customer demand for the highest-demand ultra-deepwater floaters now equals or exceeds the number of marketable rigs currently available in many areas,” commented Transocean President and CEO Jeremy Thigpen. “As a result, new contracts more consistently reflect materially increased dayrates, which will generate significantly improved cash flow.”

New contracts comprise approximately 66 percent of the additional backlog. The table below breaks down which rigs have been contracted and when, which customers have contracted them, where they will be mobilized, their dayrates and each contract’s estimated contribution to the $359.2 million backlog.

New Contracts

Rig

Customer

Location

Duration/Days

Dayrate

Backlog Estimate

Contract Date

Leiv Eiriksson

ConocoPhillips

Norway

125

$235,000

$29,375,000

Nov. 2019

Discoverer Inspiration

Talos

US GOM

120

$210,000

$25,200,000

Dec. 2019

Deepwater Asgard

Beacon

US GOM

200

$220,000

$44,000,000

Dec. 2019

Development Driller III

Undisclosed

Trinidad

365

$250,000

$91,250,000

Dec. 2019

Dhirubhai Deepwater KG2

Woodside

Myanmar

180

$250,000

$45,000,000

Jan. 2020

TOTAL

$234,825,000

 

Table of Transocean contracts since Oct. 2019

 

Roughly one-third of the newly added backlog consists of contract extensions. A summary of these exercised options follows.

Exercised Options

Rig

Customer

Location

Duration/Days

Dayrate

Backlog Estimate

Contract Date

Deepwater Invictus

BHP

US GOM

365

$155,000

$56,575,000

Oct. 2017

Transocean Norge (Opt. 1)

Equinor

Norway

32

$291,000

$9,313,000

Sept. 2018

Transocean Norge (Opt. 2)

Equinor

Norway

32

$291,000

$9,313,000

Sept. 2018

Deepwater Nautilus

Petronas

Malaysia

180

$140,000

$25,200,000

Mar. 2019

Deepwater Asgard

Beacon

US GOM

74

$240,000

$17,760,000

Jan. 2020

TOTAL

$118,161,000

 

Table of Transocean contract extensions since Oct. 2019

To contact the author, email mveazey@rigzone.com



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