Transocean said that, the five-year drilling contract is expected to commence in the fourth quarter of 2010, following shipyard construction. The contract commencement date is contingent on vendor performance and other factors.
Contracted revenues related to the five-year contract term are approximately $1.17 billion to $1.19 billion, depending on countries of operation during the contract term. Estimated contract revenues represent the maximum amount of revenues that may be earned, excluding revenues for cost escalations, customer reimbursed equipment and miscellaneous adjustments, said the company.
Construction of the unnamed dynamically-positioned, double-hull drillship is scheduled to take place at the Hyundai Heavy Industries shipyard in Ulsan, South Korea, with the first steel cutting scheduled in January 2009. The estimated total capital expenditure for the drillship, is approximately $740 million, excluding customer reimbursed equipment and capitalized interest.
The rig design is an enhanced version of Transocean’s CR Luigs and Jack Ryan-class drill ship designs. It will feature Transocean’s dual-activity drilling technology, allowing for parallel drilling operations to save time and money in deepwater well construction, compared with conventional rigs, claims the company.
