Oil and Gas Drilling News: Transocean Success in Oz

Oil and Gas Drilling News: Transocean reports that its Transocean Equinox has been awarded a five-well contract in Australia by a major operator, representing approximately $137 million in firm backlog, excluding full payment for mobilization and a demobilization fee.

The estimated 300-day contract is expected to commence in 1Q 2024. The contract also provides for a one-well option, potentially keeping the harsh environment semisubmersible in Australia through the first quarter of 2025.

Evercore ISI reports that “we believe the contract is with Shell for the Crux development, with the implied dayrate at $457,000/day for 300 days.” The firm also noted that there could be a one-well option that could keep the rig in Australia through 1Q 2025.

Speaking more generally on the offshore rig market, Evercore said that “we remain convinced the harsh environment semisubmersible market is tighter than it appears. Of 37 harsh environment semisubs, 24 or 65% are under contract but three have future contracts starting within the next months. Of the 10 units remaining, four are newbuilds and four are cold stacked, leaving only the warm-stacked Borgland Dolphin available now that the Equinox is contracted. The industry may soon find itself reactivating cold-stacked floaters, of which Transocean has two (Henry Goodrich, Transocean Leader).”

Oil and Gas Drilling News 11 Jul 2023