Deepwater Champion Drillship

Transocean May Reactivate 3 Rigs A Year As Recovery Takes Hold

Total Views: 5
September 5, 2018
transocean deepwater champion drillship samsung heavy rolls-royce
Transocean’s Deepwater Champion, built by Samsung Heavy. Photo: Rolls-Royce
by David Wethe (Bloomberg) — Transocean, the world’s biggest offshore oil driller, may reactivate two to three mothballed rigs a year as the industry embarks on a full-fledged recovery for deepwater exploration.

Deepwater Horizon Book: The Untold Story of the Gulf Oil Disaster
Related Book: Deepwater Horizon Book: The Untold Story of the Gulf Oil Disaster by John Konrad

In announcing a $2.7 billion deal for a rival operator, Transocean Ltd. cited a forecast by energy consultant Wood Mackenzie Ltd. that day-rates in waters more than two miles deep will more than double by 2020. That rebound from the industry’s deep slump could lead Transocean to bring more of its rigs out of long-term parking.

Offshore drilling contractors are currently utilizing just 65 percent of rig capacity, the Swiss company said Tuesday, citing WoodMac data.

“We have, I’d say, a bullish but realistic view of the recovery,” Transocean Chief Financial Officer Mark Mey told analysts and investors on a conference call announcing the acquisition of Ocean Rig UDW Inc. “If the recovery projectile is as we expect, we could see two to three rigs reactivated per year through contract.”

Despite all the long-term bullish talk, Transocean shares fell 7.6 percent to $11.19 at 12:11 p.m.



Back to Main