Transocean Ltd. (NYSE: RIG) has announced several contract awards over the past few days.
On March 29, the company revealed the contract fittings for two of its harsh environment semisubmersibles: the Transocean Endurance and the Transocean Norge.
As part of the deals, the Transocean Endurance was awarded a multi-well plug-and-abandon contract in Australia with an independent operator, Transocean noted. The estimated 240-day contract is expected to start in January 2024 and provide approximately $91 million in arrears, excluding mobilization costs, the company said, adding that the contract also provides for a number of options , “potentially maintaining the platform in Australia through the fourth quarter of 2025”.
In Norway, Wintershall DEA exercised a one-well option on Transocean Norge, Transocean said. The well is expected to start up in May 2023 ahead of the existing 60-day firm deadline and bring in roughly $22 million in backlog, Transocean noted.
“These rigs represent further evidence of the strength of this cyclical recovery, particularly for our hard environmental assets,” Transocean CEO Jeremy Thigpen said in a company statement.
On March 28, Transocean announced awards for two separate harsh environment semisubmersibles: the Transocean Enabler and the Transocean Encourage.
As part of these agreements, Transocean Enabler will provide drilling services for 19 firm wells and up to eight optional wells for Equinor in the Johan Castberg field in the Barents Sea, Transocean disclosed. The 570-day contract is expected to start in April 2024 and bring approximately $217 million in backlog, excluding additional services and potential performance bonuses, the company said.
Transocean Encourage will provide nine firm well drilling services for Equinor in the Norwegian North Sea, Transocean said. The 460-day contract is expected to begin in December 2023 as a direct continuation of the platform’s current program and is expected to bring approximately $165 million in backlog, excluding additional services and potential performance bonuses.
Transocean also highlighted that as part of the Enabler and Encourage contracts, each platform will receive customer-paid upgrades to digital management systems, robotics and operational automation. These improvements are expected to further reduce rig emissions and improve personnel safety, Transocean noted.
The company also said that it and Equinor have signed a strategic collaboration agreement to explore future opportunities in areas such as technology development, operational efficiency and environmental sustainability.
“We are pleased to secure these new contracts and further strengthen our relationship with Equinor,” Transocean CEO Jeremy Thigpen said in a company statement.
“These contracts and our strategic collaboration agreement demonstrate our long-term commitment to work together to deliver innovative solutions that bring value to both companies,” he added.
In a statement published on its website, Equinor confirmed that, on behalf of several licences, it had awarded contracts for the use of the Transocean Encourage, mainly in the Norwegian Sea, and the Transocean Enabler, for the Johan Castberg field. The company also confirmed the signing of a strategic collaboration agreement with Transocean.
Equinor noted that the rigs have eight-year contracts with Equinor that expire on December 1, 2023 and April 1, 2024, respectively. This will be the first contract extension since the platforms were built, as the so-called Cat D platforms, specialized for Norwegian conditions, Equinor noted.
“We are pleased to enter into a strategic partnership agreement with Transocean, which is one of our largest equipment suppliers,” Mette H. Ottøy, Equinor’s director of procurement, said in a company statement.
“This reflects our perception of Transocean as an important contributor to our ability to achieve our offshore ambitions in the coming years as well. We have been working closely together for many years and are now further expanding this cooperation by reserving a platform for the drilling of both production and exploration wells in the Norwegian Sea, and a platform for the development of the Johan Castberg field,” he added.
Erik G. Kirkemo, Equinor’s senior vice president of drilling and wells, said: “We are now securing hot equipment, which we, along with Transocean, have already invested in improving, thereby improving safety, reducing emissions and increasing ‘efficiency’.
“Done by us for the last eight years, we already know the rigs well. So we have a lot of experience to build on and we look forward to continuing our collaboration to deliver safe and efficient wells,” he added.
The Transocean Endurance, Enabler and Encourage have accommodations for 130 people, a maximum water depth of 500 meters and a maximum drilling depth of 8,500 meters, according to the Transocean site. The Transocean Norge has accommodation for 150 people, a maximum water depth of 1,000 meters and a maximum drilling depth of 12,200 meters, the Transocean site shows.
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Photo Credit – iStock.com/bomboman
