Transocean to Scrap Three Floaters

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October 25, 2016

One of the rigs marked for scrap is the Transocean Winner, which ran aground on the Isle of Lewis in Scotland in August. Photo: UK Maritime and Coast Guard Agency

Offshore drilling contractor Transocean has announced plans to scrap three rigs previously held for sale.

In a fleet update on Tuesday, the Swiss-based company said the three semi-submersible midwater floaters, Transocean Driller, Transocean Winner, and the Sedco 704 will be recycled in an environmentally responsible manner.

Other insights from the update include the previously announced early termination of the contract for the ultra-deepwater drillship Discoverer India by customer Reliance Industries. The termination is set for December 2016, prior to its expiration in January 2021. In accordance with the contract, Transocean will be paid a lump-sum payment of approximately $160 million.

Elsewhere in the fleet, the semi-submersible Transocean Barents has been awarded a 15 month contract offshore Canada at a dayrate of $260,000. Meanwhile the Sedco 712, another semi-submersible, was awarded a 16 well contract as well as a one well contract in the UK sector of the North Sea, both at undisclosed dayrates. Transocean Spitsbergen, a harsh-environment semi-submersible, has had its contract extended after the customer exercised options at an undisclosed dayrate.

Since February 2016, Transocean’s fleet of mobile offshore drilling units has shrunk from 61 units to now 57. The company also has five ultra-deepwater drillships and five high-specification jackups under construction or under contract to be constructed..

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