Transocean is retiring Leiv Eiriksson rig

Transocean adds more work to backlog, retires Leiv Eiriksson rig

Offshore drilling contractor Transocean has secured new contracts and extensions for its rig fleet, bringing the total backlog to $7.8 billion. The rig owner has also decided to retire the Leiv Eiriksson semi-submersible rig.

Leiv Eiriksson rig; Source: Pandion

In a fleet status report published last Friday, Transocean said that, as of 12 February, the company’s total backlog was approximately $7.8 billion.

When it comes to contracts and extensions, the fleet status report shows the previously announced contract extensions for two rigs from Petrobras.

Namely, Petrobras exercised a 680-day option in Brazil for the Deepwater Corcovado drillship. The rig’s contract is now set to expire in July 2023 and the day rate is $194,000.

Petrobras has also exercised an 815-day option in Brazil for the drillship Deepwater Mykonos. The contract will end in August 2023 and the day rate is $213,000.

Furthermore, the Development Driller III semi-submersible has been awarded a one-well contract extension in Trinidad.

In addition, the Development Driller III rig has been awarded a one-well contract, plus a one-well option in Trinidad.

Under these new awards, the rig will be under contract with Shell off Trinidad from May 2021 until June 2021 with a day rate of $250,000 and with BHP, also off Trinidad, from June until August 2021 with a day rate of $220,000.

The Transocean Norge semi-submersible rig has been awarded a one-well contract by Equinor in Norway. The contract will last from April until May 2021 with a day rate of $294,000.

The semi-submersible rig Transocean Barents has been awarded a three-well contract by MOL Norge in Norway set to start in May and end in December 2021. The day rate is $270,000.

The Paul B Loyd, Jr. semi-sub rig has won a 78-day contract extension from Chrysaor in the UK North Sea. The extension is effective from August until September 2021 with an undisclosed day rate.

India’s Reliance has exercised a seven-well option for the Dhirubhai Deepwater KG1 for operations offshore India. The option expires in November 2022 and the day rate is $127,000.

On the other hand, Petronas has provided notice of termination of its drilling contract for the Deepwater Nautilus semi-sub in Malaysia. The contract was initially supposed to end in January 2021 but, as a result of the termination, the rig has been idle since December 2020.

Additionally, Transocean has retired the 2001-built Leiv Eiriksson semi-submersible drilling rig and classified it as held for sale.

According to Transocean’s older fleet status report, published in October 2020, the rig’s last contract, with ConocoPhillips in Norway, expired in December 2020.

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It is also worth reminding that Transocean also retired Leiv Eirikssin’s sister rig, Eirik Raude, back in February 2019 as the rig’s reactivation costs were deemed too high. Both rigs were taken over by Transocean through the acquisition of Ocean Rig.