Offshore drilling giant
) recently issued a Fleet Update Summary for the period
commencing Feb 14, 2013 to date. The update covers the company's
drilling rig status and contract information.
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Per the report, Transocean has sold its two standard jackups −
GSF Adriatic VIII and D.R. Stewart. The jackups were held for
sale previously and Transocean has not yet disclosed the value of
the transaction. Transocean has also decreased its estimated
out-of-service time for the year 2013 by net 45 days.
In addition, Transocean got third party certification of well
control equipment on most of its active floaters (42 out of 64).
It includes 24 out of 27 ultra-deepwater rigs.
Switzerland-based Transocean is the leading offshore drilling
contractor and provider of drilling management services
worldwide. Its current contract drilling fleet comprises 82
mobile offshore drilling facilities, which again include 48
high-specification deepwater floaters, 25 mid-water floaters and
9 high-specification jackups.
Transocean currently has 6 ultra deepwater drillships and 3
high-specification jackups under construction.
With less oil being discovered on land and with companies having
to dig ever deeper to get to their reserves, Transocean is poised
to benefit from a market with robust multi-year demand trends,
given its technologically-advanced and versatile drilling fleet.
However, the introduction of new and more stringent regulations
due to the Gulf of Mexico oil spill has made deepwater drilling
activity prohibitively expensive for exploration and production
companies, making many projects marginal. This could reduce the
demand for deepwater drilling.
Transocean currently carries 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.
In the energy sector,
Helmerich & Payne Inc
Range Resources Corporation
Calumet Specialty Products Partners LP
) display better fundamentals and currently carry a Zacks Rank #1