Transocean Ltd. has been awarded two contracts which, in aggregate, contribute approximately $55.5 million in backlog, the company announced July 29. The Deepwater Conqueror was awarded a one-well contract with a major operator in the U.S. Gulf of Mexico. The value of this contract adds approximately 85 days and $28.5 million in backlog.
The Deepwater Conqueror is currently in the Gulf of Mexico, under a $579,000/day charter contract with Chevron, which expires in December.
Additionally, the Deepwater Asgard was awarded a one-well contract with another operator in the U.S. Gulf of Mexico. The value of this contract adds approximately 90 days and $27 million in backlog and includes $40,000 per day for managed pressure drilling services.
According to Tudor, Pickering, Holt & Co., while both these contracts are short-term in nature (about 85-90 day terms), the short durations suggest an even tighter U.S. GOM market than the pricing for these awards might suggest. While the U.S. GoM market has some regional-specific supply and demand factors such as new BSEE regulations, working in its favor right now, these awards are highly constructive data points and point to a very tight U.S. GoM deepwater rig market.
The announcement of new contracts comes days after the Swiss-based driller released its 2Q fleet status report, in which it announced several new contracts in Brazil, Norway and U.S. GoM along with the cancellation of one contract. Transocean also said the company’s total backlog is approximately $7.3 billion, as of July 21.
Recommended Reading
Sabine Oil & Gas to Add 4th Haynesville Rig as Gas Prices Rise
2025-03-19 - Sabine, owned by Japanese firm Osaka Oil & Gas, will add a fourth rig on its East Texas leasehold next month, President and CEO Carl Isaac said.
Devon, BPX to End Legacy Eagle Ford JV After 15 Years
2025-02-18 - The move to dissolve the Devon-BPX joint venture ends a 15-year drilling partnership originally structured by Petrohawk and GeoSouthern, early trailblazers in the Eagle Ford Shale.
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
Ring May Drill—or Sell—Barnett, Devonian Assets in Eastern Permian
2025-03-07 - Ring Energy could look to drill—or sell—Barnett and Devonian horizontal locations on the eastern side of the Permian’s Central Basin Platform. Major E&Ps are testing and tinkering on Barnett well designs nearby.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.