Chevron Awards Transocean $1.1 Billion Drillship Charter Contract

transoceanChevron has awarded a 5-year, $1.1 billion contract to Transocean today for the charter of a new drillship that will be build over the next few years at Daewoo Shipbuilding and Marine Engineering.

Construction of this new $725 million drillship is expected to begin in Q4 2014 with delivery in Q2 2016, and will be built alongside six other Transocean drillships currently under construction at the South Korean yard.  The contract with Chevron is expected to commence in the fourth quarter of 2016.

From Transocean:

Featuring state-of-the-art equipment, the newbuild drillship will include Transocean’s patented dual-activity drilling technology that allows for parallel drilling operations. The vessel will be outfitted with two 15,000 psi blowout preventers (BOPs) which are expected to reduce non-productive time between wells.  The drillship will be able to accommodate a future upgrade to a 20,000 psi BOP when it becomes available from the OEM suppliers.

The rig will also feature an industry-leading 2.5-million-pound hook load capacity, a variable deckload capacity of 23,000 metric tons, enhanced well-completion capabilities and diesel engines configured to comply with anticipated Tier III International Maritime Organization (IMO) emissions standards. The drillship is designed and outfitted to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet. In addition, the drillship will have accommodations for 240 people.

“We are delighted to continue our partnership with Chevron in pioneering ultra-deepwater drillships that in the past have set world records and achieved strong utilization with time-saving efficiencies,” said Steven L. Newman, President and Chief Executive Officer of Transocean Ltd.

“Further, the addition of this latest newbuild drillship demonstrates the execution of our asset strategy and commitment to increasing our exposure to high-specification floaters with industry-leading capabilities.”