Transocean Lands $830MM Rig Contract with Chevron

Transocean Lands $830MM Rig Contract with Chevron
Transocean has signed a rig design and construction management contract and a five-year drilling contract with Chevron.

Offshore drilling contractor Transocean Ltd. has landed a contract with Chevron worth $830 million, the company announced Friday.

Transocean signed a rig design and construction management contract, as well as a five-year drilling contract for one of its ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore.

The rig, which will be the first ultra-deepwater floater rated for 20,000 psi operations, will begin operations in the Gulf of Mexico in the second half of 2021.

If the contract is terminated by the customer, Transocean will be paid for its incremental 20,000 psi subsea investment in the rig. Additionally, a termination for convenience occurring after April 2020 will result in a substantial termination fee.

“Transocean has a long and storied history of introducing new technologies that enable our customers to safely and efficiently access the world’s most challenging reservoirs,” Transocean CEO Jeremy Thigpen said in a company statement. “Adding to that history, we are proud to be delivering the industry’s first rig capable of drilling and completing wells requiring subsea equipment rated to 20,000 psi.”

The rig will have dual 20,000 psi blowout preventers, net hook-load capacity of three million pounds, 165-ton active heave compensating crane and an enhanced dynamic positioning system.


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