Offshore staff

HOUSTON -- Transocean has exercised its $238-million option to purchase a 50% interest in a joint venture company with Pacific Drilling Ltd. The JV will own two ultra deepwater Samsung-design drillships, which are currently under construction in South Korea.

The first JV drillship,Deepwater Pacific 1, has a firm commitment for a four-year drilling contract, which may be converted to five years. The contract is expected to begin in 3Q 2009. Contract revenues are estimated to be $766 million for the four-year term, or $935 million for the five-year term.

Deepwater Pacific 1 will be capable of drilling to 35,000-ft (10,668-m) TD in up to 12,000 ft (366 m) water depth. The estimated delivered cost is $685 million.

The second JV drillship,Deepwater Pacific 2, will have identical drilling capacity. Construction of the $655-million drillship is expected to be completed in 4Q 2009.

10/24/2007