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Transocean Lands $518 Million Contract for Ultra-Deepwater Drillship in Mexico

Mike Schuler
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July 18, 2023

Offshore drilling contractor Transocean (NYSE: RIG) gas announced a $518 million contract for one of its ultra-deepwater drillships off Mexico.

Transocean said the contract covers 1,080 days and will contribute approximately $518 million in backlog, excluding revenue for mobilization and demobilization, equating to a dayrate of more than $479,000. The company said the contractual dayrate will be subject to a semi-annual cost adjustment mechanism with a baseline established as of July 1, 2023.

The contract is expected to commence between the fourth quarter of 2025 and second quarter of 2026.

Transocean will utilize one of three high-specification, seventh generation drillships, which it will chose no later than one year prior to the earliest date in the commencement window. It identified the three drillships as the Deepwater Invictus, Deepwater Thalassa, and Deepwater Proteu.

The contract award provides further evidence that the offshore drilling market is rebounding after a prolonged 8-year downturn.

“This award is especially encouraging on numerous fronts,” said Chief Executive Officer Jeremy Thigpen. “The fact that our customers are securing rigs well in advance of their programs and committing to long-term contracts clearly demonstrates the tightness of the market. Additionally, our ability to designate the specific rig closer to the commencement of the program provides us with increased flexibility to optimize the utilization of our high-specification fleet of ultra-deepwater drillships.”

Transocean operates a fleet of 37 mobile offshore drilling units, consisting of 28 ultra-deepwater floaters and 9 harsh environment floaters.

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