Transocean Lands Latest Contract Award in Australia

Transocean Ltd., a leading offshore drilling contractor, has announced that its Transocean Equinox has been awarded a five-well contract in Australia by a major operator.

The contract is expected to bring in approximately $137 million in firm backlog, excluding payment for mobilization and a demobilization fee. The contract is estimated to last for 300 days and is expected to commence in the first quarter of 2024. The contract also includes a one-well option, which could potentially extend the rig’s stay in Australia through the first quarter of 2025.

The Transocean Equinox has been idle since completing a contract for Equinor in October 2022, where it had a day rate of $488,000.

The latest contract award follows another recent award for the harsh environment semisubmersible Transocean Endurance, which received a multi-well plug and abandonment program contract with an independent operator in Australia at the end of March. This 240-day contract is expected to commence in January 2024 and contribute approximately $91 million to Transocean’s backlog. Similar to the Equinox contract, the Endurance contract also includes a series of options that could potentially keep the rig in Australia through the fourth quarter of 2025.

Transocean operates a fleet of 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters.

The latest contract awards not only provide a significant boost to the company’s backlog, but also provide additional evidence of the cyclical recovery in the offshore oil and gas market, which is driving demand for Transocean’s harsh environment rigs.

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