Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that a subsidiary has awarded contracts to Keppel FELS Limited's shipyard in Singapore for the construction of five Super B 400 Bigfoot Class jackup drilling rigs. The first rig is expected to be delivered from the shipyard in the first quarter of 2016 and the remaining four jackups delivered at approximately four-month intervals thereafter. The combined capital cost for the five rigs is estimated at under $1.2 billion, excluding capitalized interest, and includes the shipyard contracts; project management; all owner-furnished equipment; capital spares and inventory; and costs associated with operational readiness.
Additionally, each of the five contracts includes an option to order an additional jackup of the same design and specifications on similar terms. The first option must be exercised within one year; the remaining four options must be exercised within consecutive four-month intervals thereafter.
The jackups will be capable of operating in water depths up to 400 feet and constructing wells up to 35,000 feet. The rigs also will have Keppel FELS' latest proprietary design and incorporate the most advanced offshore drilling technology. In addition, the rigs are configured with Transocean-developed features that improve performance and deliver wells more efficiently for customers. These include offline tubular handling capabilities, superior jacking and preload capabilities, a flexible mud system, and simultaneous operations support. The rigs are designed to accommodate 150 personnel.
"Continuing our growth in the high-specification jackup business is an important element of our asset strategy," said Steven L. Newman, President and Chief Executive Officer of Transocean Ltd. "We are very excited about the potential for these rigs given our expectation for continued customer demand for assets of this capability and the outstanding operating performance of the four new high-specification jackups we have recently placed into service."
Statements in this news release regarding newbuild high-specification jackup rigs, operating specifications, contract durations, contract commencement dates, estimated contract revenues, area of operations, estimated capital costs, duration and location of construction, options to order additional units, as well as any other statements that are not historical facts, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, actions by customers and other third parties, the future price of oil and gas, the actual revenues earned and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. Forward-looking statements are based on current expectations and Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
This press release or referenced documents does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and it does not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX Swiss Exchange. Investors must rely on their own evaluation of Transocean Ltd. and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean Ltd.
About Transocean
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.
Transocean owns or has partial ownership interests in, and operates a fleet of, 80 mobile offshore drilling units consisting of 46 high-specification floaters (ultra-deepwater, deepwater and harsh environment drilling rigs), 22 midwater floaters and 12 high-specification jackups. In addition, the company has seven ultra-deepwater drillships and five high-specification jackups under construction.