Offshore drilling giant
Transocean Ltd.
(
RIG
) issued a monthly 'Fleet Update Summary' covering the company's
drilling rig status and contract information.
Per the report, the company's high specification deepwater
floater Sedco 704 won a two-year contract from
Chevron Corporation
(
CVX
) to operate in the U.K. sector of the North Sea. The rig is
expected to work from July 2012 at a current dayrate of $310,000,
up from the prior dayrate of $280,000.
Transocean's standard jackup Trident XIV received a two-year
contract and will operate in the waters of Angola. The rig was also
contracted by Chevron at a dayrate of $116,000, higher than the
previous dayrate of $102,000.
The company's high specification ultra-deepwater jackup
Deepwater Nautilus received a five-year contract extension from
Royal Dutch Shell plc
(
RDS.A
) to work in the Gulf of Mexico waters. The contract is executable
from August 2012, at a lower dayrate of $525,000, against a prior
dayrate of $551,000.
Another drillship - Sedco 702 - got a three-year extension of
its existing contract and will operate in offshore Nigeria. The rig
was contracted by Shell at a dayrate of $461,000, higher than the
previous dayrate of $357,000.
Transocean also received an extension for Paul B. Loyd, Jr.
drillship - working in the U.K. waters of North Sea - from
BP plc
(
BP
) for a higher dayrate of $440,000 versus the older rate of
$345,000.
Effective May 31, 2012, Transocean gained the 100% ownership
right of Dhirubhai Deepwater KG1 and Dhirubhai Deepwater KG2 -
which were previously equally shared through a joint venture.
However, jackup GSF Adriatic II has been sold, and hence will no
longer be part of the company's fleet.
Leading offshore drilling contractor and the provider of
drilling management services globally, Transocean's current
contract drilling fleet comprises 130 mobile offshore drilling
facilities that include 50 high-specification deepwater floaters,
25 midwater floaters, 10 high-specification jackups, 44 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, which
translates into a short-term Hold rating.
BP PLC (BP): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
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TRANSOCEAN LTD (RIG): Free Stock Analysis
Report
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