Hurricane terminates Transocean semi contract

July 15, 2020
Transocean Ltd. has provided an update on its offshore drilling rig fleet.

Offshore staff

STEINHAUSEN, Switzerland Transocean Ltd. has provided an update on its offshore drilling rig fleet.

As of July 15, the company’s total backlog is about $8.9 billion.

Hurricane Energy has terminated its contract for the harsh environment semisubmersible Paul B. Loyd Jr. in the UK North Sea.

In October, the Paul B. Loyd Jr. is expected to start a contract with Chrysaor in the UK North Sea.

In April, Burullus sent a notice of early termination for its drilling contract with the ultra-deepwater drillship Discoverer India offshore Egypt. Burullus rescinded its termination notice during 2Q. The contract is expected to end this month.

In May, in response to operational and safety challenges resulting from the COVID-19 pandemic, Total agreed to an additional sequence at standby rate of $200,000/d for the 69-day period ending on July 4, 2020 for the drillship Deepwater Skyros. This sequence did not affect the firm contract, which resumed on July 5, 2020 offshore Angola, and is now expected to end on Dec. 8, 2021.

As a result of certain delays, the timing for the delivery of the drillship Deepwater Atlas from Jurong Shipyard is currently being assessed. Transocean signed a conditional agreement with Beacon Offshore Energy for drilling services at its Shenandoah project in the US Gulf of Mexico, which requires a 20,000 psi well control system.

The Shenandoah project and associated drilling services are subject to a final investment decision, which is expected to be made on or prior to March 31, 2021. The total contract value based upon the conditional agreement is estimated to be about $250 million. However, no backlog will be recognized until the project is sanctioned, the company said.