Transocean delays delivery of ultra-deepwater drillships

June 7, 2021
Transocean Ltd. and Jurong Shipyard Pte Ltd. have agreed to delay delivery of the ultra-deepwater drillships Deepwater Atlas and Deepwater Titan.

Offshore staff

STEINHAUSEN, SwitzerlandTransocean Ltd. and Sembcorp Marine’s subsidiary Jurong Shipyard Pte Ltd. (JSPL) have agreed to delay delivery of the ultra-deepwater drillships Deepwater Atlas and Deepwater Titan.

As part of the agreement, JSPL has agreed to accept deferred payment for both rigs. 

Delivery of the Deepwater Atlas is now expected to be in December 2021. Upon delivery, the drilling contractor will make a $50-million payment to JSPL; the balance of payments owed to the shipyard, or about $370 million, will be payable during a five-year period following delivery pursuant to a secured financing arrangement with the shipyard.

Transocean also has agreed with BOE Exploration & Production LLC (Beacon) that drilling on the Shenandoah project in the US Gulf of Mexico is expected to start during 3Q 2022. Beacon and its partners are expected to make a final investment decision on or before July 31, 2021.

Delivery of the Deepwater Titan is now expected to be in May 2022. Upon delivery, the company will pay JSPL 80% of amounts owed, or about $350 million. Twenty percent of amounts owed, or approximately $90 million will be deferred and payable over a five-year period following delivery pursuant to a deferred payment arrangement with the shipyard.

Transocean and Chevron U.S.A., Inc. have agreed that commercial operations of the Deepwater Titan are expected to commence in 1Q 2023. The company’s contract with Chevron maintains its duration and estimated backlog of $830 million, excluding mobilization and reimbursables.

Jeremy Thigpen, president and CEO of Transocean, said: “Notably, as a critical element of these agreements, we will receive shipyard financing, which materially improves our year-end 2022 liquidity by over $450 million, thus extending our runway and providing us with additional investment flexibility as the industry recovers.”

The Deepwater Atlas and Deepwater Titan are the world’s first eighth generation ultra-deepwater drillships and only rigs to feature a 3-million-pound hook-load. These drillships will also include the first 20,000 psi well control system.

In addition to their drilling capabilities, these rigs are also designed and equipped to optimize fuel consumption, reduce emissions, and thus minimize the associated carbon footprint of each offshore project, according to Transocean.

06/07/2021

Courtesy SBM Offshore / GustoMSC via aukevisser.nl
Courtesy Valeura Energy Inc. Corporate Overview May 2024