Recently, offshore drilling giant -
) issued a monthly 'Fleet Update Summary' covering the company's
drilling rig status and contract information.
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Per the report, the company's midwater floater Sedneth 701 won a
one-year contract from Nigerian Petroleum Development Company
Limited or NPDC to work in the offshore region of the country. The
contract is executable from September 2012 at a revised dayrate of
$311,000, against a prior dayrate of $275,000.
Transocean's Sedco 714 received a one-year contract extension from
) to operate in the U.K. sector of the North Sea. The rig is
expected to work at a dayrate of $395,000, up from prior dayrate of
Another drillship - Transocean John Shaw - also got a one-year
extension from Abu Dhabi National Energy Company or TAQA to work in
the North Sea waters at a dayrate of $360,000, higher than the
previous dayrate of $318,000.
The contract for standard jackup - GSF Key Manhattan - was extended
for two years at a lower dayrate of $134,000, versus prior one of
$137,000. The rig was contracted by
) and will work on the offshore basin of Italy.
Transocean also received a three well contract extension for GSF
Galaxy II drillship - working in the U.K. waters of North Sea -
from French multinational company - GDF Suez. The dayrate for the
first well is fixed at $210,000, while the remaining wells will
operate at a dayrate of $220,000.
However, jackup Discoverer 534 has been put up for sale, and hence
will no longer be a part of the company's fleet.
Since the last update on July 18, new contract and extensions
totaled a backlog of about $600 million.
Transocean is the leading offshore drilling contractor and the
provider of drilling management services worldwide. Its current
contract drilling fleet comprises 128 mobile offshore drilling
facilities, which again include 49 high-specification deepwater
floaters, 25 midwater floaters, 10 high-specification jackups, 43
standard jackups and one swamp barge in support of offshore
drilling activities across the globe.
We are maintaining our long-term Neutral recommendation on the
stock. Transocean currently retains a Zacks #3 Rank, translating
into a short-term Hold rating.