Transocean has secured a drilling contract worth $830m from Chevron for one of its two ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore.
Image: Transocean secures $830m drilling contract from Chevron. Photo: courtesy of QR9iudjz0/Freeimages.com
The contract signed by Transocean includes rig design and construction management as well as a five-year drilling agreement.
The offshore drilling contractor said that the contract is subject to design, construction, and delivery requirements set forth in the construction contract.
The rig, which will be the first ultra-deepwater floater rated for 20,000 psi operations, is expected to begin operations in the Gulf of Mexico in the second half of 2021.
Transocean’s president and CEO Jeremy Thigpen said: “We are extremely pleased to announce that we have entered into an agreement with Chevron to construct and operate the industry’s most capable ultra-deepwater drillship.
“Transocean has a long and storied history of introducing new technologies that enable our customers to safely and efficiently access the world’s most challenging reservoirs.
“Adding to that history, we are proud to be delivering the industry’s first rig capable of drilling and completing wells requiring subsea equipment rated to 20,000 psi.”
The drillship will feature dual 20,000 psi blowout preventers, net hook-load capacity of three million pounds, 165-ton active heave compensating crane, and an enhanced dynamic positioning system.
Transocean will get compensation for its incremental 20,000 psi subsea investment in the rig, in case of termination of the contract.
Earlier this month, the company completed a transaction to acquire its rival Ocean Rig in a cash and stock deal worth $2.7bn.
The acquisition is expected to improve Transocean’s position as the major player in ultra-deepwater and harsh environment drilling space.
It will allow the company to gain Ocean Rig’s fleet comprising of nine high-specification ultra-deepwater drillships and two harsh environment semisubmersibles.
Ocean Rig’s fleet also includes two high-specification ultra-deepwater drillships currently under construction at Samsung Heavy Industries.
In September, Transocean’s newbuild, harsh environment semisubmersible Transocean Norge secured a six-well contract from Equinor. The contract is expected to commence in July 2019, following the shipyard delivery of the rig in early 2019.