Transocean (RIG) Wins 910-Day Drilling Deal Set to Start in Q3
Transocean RIG announced recently that one of its ultra-deepwater drillships, the "Dhirubhai Deepwater KG2", has been awarded a 910-day contract by a national oil company in Brazil for offshore drilling operations. The drillship will be used to support the company's work offshore Brazil.
According to Transocean, the contract has an estimated backlog of $392 million, resulting in a daily rate of around $430,000 ($392 million divided by 910 days). Transocean stated that there is an additional fee in the offshore drilling contract for the Dhirubhai Deepwater KG2. This is referred to as the mobilization fee and is estimated to be around $38.7 million. This fee is calculated as 90 times the contract day rate, which is estimated to be $430,000. The new contract is expected to commence in the third quarter of 2023.
The ultra-deepwater drillship, Dhirubhai Deepwater KG2, constructed in 2010, boasts a maximum operating depth of 12,000 feet (3657.6 meters) and a maximum drilling depth of 35,000 feet (10668 meters). It has been inactive since January 2022.
Back in July 2021, this drillship was awarded a one-well contract, plus two one-well options, with Shell in Brunei. The contract was scheduled to start and end in December 2021, with a day rate of $190,000. The rig’s previous contract was with Woodside in Myanmar, with a day rate of $250,000.
According to the October 2022 fleet status report from Transocean, the Dhirubhai Deepwater KG2 drillship has been inactive since January 2022. The sixth-generation ultra-deepwater drillship was built in 2010 by Samsung Heavy Industries Geoje, South Korea and designed using a Samsung 12000 double hull.
This ultra-deepwater drillship is equipped to operate in water depths of up to 12,000 feet. It boasts a maximum drilling depth of 35,000 feet and can house 180 individuals.
Transocean's recent activities include contract awards and extensions for five drilling rigs, as reported in January 2023. These rigs will now work in Norway, Suriname, the Gulf of Mexico (GOM), and the North Sea.
Zacks Rank and Other Key Picks
Switzerland-based Transocean, Inc. is the world's largest offshore drilling contractor and a leading provider of drilling management services. Contract rigs are provided by the company to explore and develop oil and gas.
Currently, Transocean carries a Zacks Rank #2 (Buy). Meanwhile, investors interested in the energy sector might look at some other stocks like Patterson-UTI Energy PTEN sporting a Zacks Rank #1 (Strong Buy) and Calumet Specialty Products Partners (CLMT) and Halliburton (HAL) both holding a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy: PTEN beat the Zacks Consensus Estimate for earnings in three of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 169.23%, on average.
Patterson-UTI is worth approximately $3.44 billion. Its shares have gained 47.2% in the past year.
Halliburton: Halliburtonis valued at around $4.74 billion. In the past year, HP stock has increased by 40.2%.
TX-based Halliburton Company, headquartered in Houston, is one of the largest oilfield service providers in the world with a trailing four-quarter earnings surprise of roughly 130.98 %, on average.
Calumet Specialty Products Partners: Calumet Specialty Products Partners is worth approximately $ 1.36 billion. Its shares have gained 16.1% in the past year.
Calumet Specialty Products Partners, L.P. is a leading independent producer of high-quality, specialty hydrocarbon products in North America.
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