Chevron hires two Transocean jackups for 5 years offshore Thailand

Source: Transocean

Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that one of its subsidiaries has been awarded five-year drilling contracts for two newbuild high-specification jackup rigs for operations offshore Thailand for a subsidiary of Chevron Corporation (NYSE: CVX). 

The five-year drilling contracts are expected to commence during the first quarter of 2013 and third quarter of 2013, respectively, following shipyard construction and mobilization. The contract commencement dates are contingent on vendor performance and other factors.

The estimated contract revenues are fixed for the first three years and may be adjusted for the last two years. The estimated revenues which could be generated over each five-year contract term, assuming the fixed rate in effect during the first three years continues during the fourth and fifth years of the contract terms, are approximately $246 million for each rig, excluding revenues for mobilization, demobilization, and miscellaneous adjustments. 

One of Transocean's subsidiaries has executed a shipyard contract with Keppel FELS to build both of the high-specification Super B Class jackups. Construction is scheduled to take place at Keppel FELS' yard in Singapore. The combined capital cost for the two rigs is estimated to be approximately $400 million, excluding capitalized interest. Transocean has options to order three additional high-specification jackup rigs. 

The jackup rigs, which are Keppel FELS's latest proprietary design, will be capable of operating in water depths up to 350 feet and constructing wells 35,000 feet deep. The rigs will feature the most advanced offshore drilling technology, including offline tubular handling features and simultaneous operations support. In addition, the rigs will have accommodation for 150 personnel.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs