Offshore drilling giant
) recently issued a Fleet Update Summary for the period
commencing Aug 19, 2013, to date. The value of all the new deals
and extensions in contracts, in the same time frame, is estimated
to be roughly $64.0 million.
The update covers the company's offshore drilling rig status
and contract information. Transocean informed that the expected
out-of-service time for 2013 rose by one day, while for 2014 the
projected out-of-service time was down by 134 days.
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Per the report, Transocean Legend, a semisubmersible rig, got a
contract for operating two wells located off the coast of
Australia. The rig will be working at a dayrate of $425,000,
higher than its previous rate of $293,000. The deal is expected
to add $64 million to the existing backlog.
Moreover, Transocean revealed the suspension of contract for
Sedco 710, a semisubmersible rig. The rig is expected to remain
Included in the report, Transocean Rather, a semisubmersible
deepwater floater is also out of contract. Additionally, the
company is willing to liquidate Falcon 100, a midwater floater.
In addition, Transocean disclosed the divestment of Trident 4 and
Trident 6, two jackups.
Switzerland-based Transocean is the world's largest offshore
drilling contractor and the leading provider of drilling
management services worldwide. Transocean's fleet is considered
to be one of the most modern and versatile in the world due to
its emphasis on technically demanding segments of the offshore
However, the introduction of new and more stringent regulations
due to the oil spill has made deepwater drilling activity
prohibitively expensive for exploration and production companies,
making many projects marginal. This could reduce the demand for
Transocean currently holds a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at oil and gas drilling service providers
Pacific Drilling SA
Parker Drilling Co.
) that offer value. All the stocks sport a Zacks Rank #2