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Offshore driller Transocean has scored a six-well contract with Equinor for the newbuild, harsh environment semisubmersible Transocean Norge.
Under the contract, the rig will spend around 300 days drill in the Norwegian Continental Shelf. The contract is expected to start in July 2019, following the shipyard delivery of the rig in early 2019.
Transocean will operate the Transocean Norge – formerly known as the West Rigel – and has a 33% interest in the joint venture that owns the rig, with the remaining 67% interest owned by Hayfin Capital. Transocean bought its stake in the rig in May this year. The rig had been ordered at the Jurong yard by a Seadrill subsidiary, North Atlantic Drilling Limited (NADL), but never delivered.
Transocean said that the contract backlog is approximately $89 million, excluding a bonus opportunity and other services. The contract is denominated approximately 55% in U.S. dollars and 45% in Norwegian kroner.
Additionally, the contract includes four one-well options. “We are very pleased to have so quickly secured a contract for the Transocean Norge, which we recently acquired through our joint venture with Hayfin,†said Jeremy Thigpen, Transocean’s President and Chief Executive Officer.
“This contract provides further evidence of the strong demand for high-specification, harsh environment semi-submersibles and of the relationship and history of solid performance that we have with Equinor.â€
To remind, when announcing the acquisition of the ownership in the Transocean Norge , of the Moss Maritime CS60 design, Transocean said the rig was considered to be among the most capable newbuild semi-submersibles in the world.
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Second semi-sub hired this week
In a separate statement, Equinor said that the deal was a part of a previously signed framework agreement between the two companies.
Transocean Spitsbergen was the company’s first rig to be included as per the framework agreement terms, and Transocean Norge will be the second, Equinor said.
The six wells will be drilled for the Tordis/Vigdis, Visund, Bauge and Snorre licenses.
“We are pleased to sign an agreement with a new, efficient, state-of-the-art rig, and to continue our good cooperation with this company. We have a common goal of working safely and efficiently, and we look forward to seeing the rig in operation for Equinor from next year. This is one of the rigs we have chosen for a long-term cooperation,†says Geir Tungesvik, Equinor’s senior vice president for Drilling & Well.
This seems to be a good day for newbuild rigs. Earlier on Friday, another offshore driller Noble Corporation said it had bought a new Gusto MSC CJ46 design jack-up rig from Singapore’s rig builder PaxOcean Group. The driller has already secured an initial contract for the newbuild rig.
Also worth noting, the deal with Transocean for the Transocean Norge marks the second harsh-environment rig deal Equinor has signed this week. Equinor on Wednesday announced a contract for Seadrill’s West Hercules ultra-deepwater semi-submersible drilling rig for operation in the Barents Sea. Elsewhere, Seadrill has also won new work for a semi-submersible rig with Exxon in Canada.
Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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