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Transocean Fleet Update: New Contracts Amid Less Activity

Offshore drilling behemoth, Transocean Ltd. RIG has provided its fleet status report for the period from Oct 26, 2015. The value of the new deals and extensions in contracts, which were made during the aforesaid time frame, is estimated at roughly $500 million. The update covers the company's offshore drilling rig status and contract information.  

Transocean stated that the expected out-of-service time for 2016 has been increased by 126 days.   

Per the report, Deepwater Thalassa, an ultra-deepwater drillship, has started operations on its 10-year contract, which pertains to work in the U.S. Gulf of Mexico. The rig is expected to work at a dayrate of $519,000. This drillship will make use of Transocean’s dual-activity drilling technology, Active Power Compensation hybrid system and unparalleled hoisting capacity. Deepwater Thalassa can be further upgraded to include a 20,000 psi blow out preventer (BOP) system.

Transocean added that Sedco 702 has received a 45-day contract extension to continue work in offshore Nigeria. The rig is expected to work at a dayrate of $275,000.

The company further mentioned that the semi-submersible GSF Rig 140 has received a contract to operate a well located offshore India at a dayrate of $158,000.

The company also reported that M.G. Hulme, Jr has been awarded a one-well contract. The rig is expected to work at a dayrate of $163,000. However, the location of its operations has not been specified.

The rig Henry Goodrich is expected to begin drilling in Canada in the second quarter of 2016. The duration of the contract is two years and the rig is expected to work at a dayrate of $275,000.

Cajun Express has received a drilling contract for 80 days in offshore Ivory Coast. The day rate, however, has not been specified.

The company also reported that a customer has exercised a 90-day option for the rig Jack Bates. The rig will be working off the coast of Australia at a dayrate of $195,000.

Transocean Arctic, has received three separate contracts for drilling in the Norwegian sector of the North Sea.

The company also confirmed that two of its rigs, namely Deepwater Navigator and GSF Grand Banks, have been held by the firm for sale.

Transocean currently holds a Zacks Rank #2 (Buy).

Other favorably placed stocks in the energy sector are Cheniere Energy Partners L.P. CQP, Murphy USA Inc. MUSA and Petróleo Brasileiro S.A. - Petrobras PBR.A. All these stocks sport a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
PETROBRAS-ADR P (PBR.A): Free Stock Analysis Report
 
MURPHY USA INC (MUSA): Free Stock Analysis Report
 
TRANSOCEAN LTD (RIG): Free Stock Analysis Report
 
CHENIERE ENERGY (CQP): Free Stock Analysis Report
 
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