Transocean: Two contracts in, one out, one rig to the scrapyard

Transocean, a Switzerland-based offshore drilling contractor, has notched up $26 million worth of rig contract extensions since its last update in March 2015. It has also lost a contract for one rig, and decided to scrap one.

In its latest fleet update, Transocean Ltd. said it won contract extensions for its Sedco Express and GSF Galaxy II drilling rigs.

CAMAC Energy, soon to be named Erin Energy, has extended the Sedco Express rig contract offshore Nigeria for a 45-day duration at a dayrate of $300,000, bringing $14 million estimated backlog to Transocean. The semi-submersible rig is being used at the Oyo field.

In the UK North Sea, GDF Suez has extended the contract for the 1998-built GSF Galaxy II jack-up rig. The extension however, comes at a reduced dayrate of $190.000, compared to the previous one of $214.000. The two month extension started in March, and will bring Transocean approximately $12 million.

As for the above mentioned contract termination, Transocean has revealed that the client, Total, released the Sedco Energy semi-submersible drilling rig. Tranoscean says that the contract provides for a payment to the company in the event of an early termination. The rig’s AIS data shows it is currently anchored offshore Congo.

More scrapping ahead

Transocean has said it intends to scrap the GSF Explorer drillship. The drillship built in 1973, is classified as held for sale. As a result, second quarter 2015 results are expected to include a related estimated non-cash charge of $100 million to $120 million, net of taxes. To date, Transocean has said it wants to scrap a total of 19 floaters.

Earlier this month, the driller said it would dispose of a midwater floater GSF Aleutian Key and high specification, deepwater, semi-submersible rig Sedco 707.

The Discoverer Enterprise, Sedco Energy, Transocean Amirante, and GSF Galaxy III are idle. According to Transocean, an “Idle” rig is between contracts, readily available for operations, and operating costs are typically at or near normal levels. The company’s status report shows that, apart from the four currently idle rigs, three more rigs will become idle soon.

Offshore Energy Today Staff

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