Transocean gains contract, receives term notice

Offshore staff

ZUG, Switzerland Transocean Ltd. has two items of contract news related to its ultra-deepwater fleet.

Reliance Industries Ltd. will exercise its contractual option to terminate the contract for the ultra-deepwater drillship Discoverer India effective December 2016, years prior to its January 2021 expiration. In accordance with the contract, Transocean will be compensated by Reliance and its partners for the early termination through a lump-sum payment of approximately $160 million.

In late December 2010, the then-newbuild Discoverer India entered service for Reliance Industries under a minimum five-year drilling contract. Reliance then opted to extend the contract by 10 years.

The company’s most recent quarterly fleet status report dated July 21 shows Discoverer India was operating on a day rate of $508,000, previously contracted at $528,000.

Suncor Energy has awarded Transocean Ltd. a 15-month contract for the harsh-environment, ultra-deepwater floater Transocean Barents at a day rate of $260,000. The estimated contract backlog, excluding mobilization, is $119 million.

The rig is expected to begin operations offshore Canada in 3Q 2017.

10/03/2016

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