Offshore drilling behemoth Transocean Ltd. RIG has provided its monthly fleet status report for the period from May 18, 2015. The latest fleet update mentions several contract extensions but no new contracts. However, there has been improvement from its last fleet update in terms of backlog addition.
The value of the new deals and extensions in contracts, which were made during the aforesaid time frame, is estimated at roughly $109 million. The update covers the company's offshore drilling rig status and contract information.
Transocean stated that the expected out-of-service time for 2015 has increased by 45 days.
In its latest fleet update, Transocean stated that the jackup Transocean Andaman has received a one-year contract extension. The jackup would continue work at offshore Thailand at a dayrate of $115,000. This award has added $42 million to the company’s existing project backlog.
Per the report, the drillship Deepwater Champion has received a three-month contract extension, under which it will continue to work in the U.S. Gulf of Mexico. The drillship is expected to work at a dayrate of $395,000. The award has added $36 million to the company’s existing project backlog.
The company also mentioned that the jackup GSF Galaxy II has received a contract extension for one well to work in the U.K. sector of the North Sea. The jackup would work at a dayrate of $190,000. The award has added $17 million to the company’s current project backlog.
Transocean also declared that that Sedco Express – a fifth generation semi-submersible – has received a 45-day contract extension. The rig would continue work at offshore Nigeria at a dayrate of $300,000. The award has added another $14 million to the company’s existing project backlog.
Additionally, the company stated that it has changed its construction contract for two drillships. It expects a delay of 24 months for the two newbuild, ultra-deepwater drillships. The company anticipates receiving delivery of the drilliships in the second quarter of 2019 and first quarter of 2020, respectively.
The company also mentioned that the jackup GSF Monarch and sixth generation semi-submersible Transocean Spitsbergen are currently idle. The semi-submersible has concluded work 45-days before the stipulated time and as such, Transocean expects to receive additional payment.
The drillship GSF CR Luigs, which was previously idle, is now stacked.
Fourth-generation semi-submersible GSF Celtic Sea and third-generation semi-submersible Transocean Amirante are to be sold.
Transocean confirmed that it plans to scrap 20 floaters – excluding the Celtic Sea, which would either be sold or used for non-drilling purposes.
Currently, Transocean holds a Zacks Rank #2 (Buy).
Better-ranked players from the broader energy sector include NuStar Energy L.P. NS, PetroChina Co. Ltd. PTR and CNOOC Ltd. CEO. All these stocks sport a Zacks Rank #1 (Strong Buy).
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