Transocean bags $7.6bn deal from Shell

by on September 28, 2012 1:23 pm BST

Swiss-based drilling contractor giant Transocean has scooped a massive drillship deal from Shell for four newbuild ultra-deepwater drillships for an estimated $7.6 billion.

The dynamically positioned quartet are being ordered by the Anglo-Dutch supermajor on ten-year contracts, reports of which first emerged earlier this month.

Transocean chief executive Steven Newman said the new contracts were the latest in a 40-year long relationship the rig owner has had with Shell.

Peter Sharpe of Shell said that the quartet were state-of-the art deep-water rigs with the highest operational, safety and environmental standards.

Daewoo Shipbuilding and Marine Engineering is to build the rigs at its Okpo yard in South Korea, where Transocean’s five Enhanced Enterprise-Class rigs were built and where two other ultra-deepwater drillships are currently under construction.

The four rigs will be built starting in the final quarter of next year, with first delivery from shipyard in mid-2015.

The next three rigs will be delivered in six-month intervals thereafter, Transocean said.

The contractor said it expected to invest $3 billion in capital for the contract.

The drillships will be designed to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet.

Each will come equipped with two 15,000 psi blowout preventers in a move to reduce non-productive time between wells.