Transocean bags US$830 million drilling contract with Chevron for newbuild drillship
Offshore driller Transocean has entered into an offshore rig deal with Chevron which will see Transocean lease “industry’s most capable ultra-deep-water drillship” to Chevron for Gulf of Mexico operations starting in 2021.
Transocean said on the 27th December that it had signed a rig design and construction management contract, as well as a five-year drilling contract, with Chevron USA, Inc for one of its two dynamically positioned ultra-deep-water drillships currently under construction at the Jurong shipyard in Singapore.
The drilling contract has an estimated backlog of US$830 million, excluding mobilisation and reimbursables.
The drilling contract is subject to design, construction, and delivery requirements set forth in the construction contract, Transocean said. Transocean did not say how much it would need to invest further in the drillship construction.
The rig will be the first ultra-deep-water floater rated for 20,000 psi operations and is expected to start operations in the Gulf of Mexico in the second half of 2021.
Transocean ordered the two drillships of the Jurong Espadon 3T design in 2014. They were originally scheduled to be delivered in the second quarter of 2017 and the first quarter of 2018. This was then put off for 2020.
Substantial termination fee
In the event of termination for convenience by Chevron, Transocean will be compensated for its incremental 20,000 psi subsea investment in the rig. Additionally, a termination for convenience occurring after April 2020, would result in “a substantial termination fee”, Transocean said.
According to Transocean, the drillship will feature the most advanced capabilities and state-of-the-art technology available including dual 20,000 psi blowout preventers, net hook-load capacity of three million pounds, 165-ton active heave compensating crane, and an enhanced dynamic positioning system.
The rig’s high-reliability power plant will also be configured to comply with Tier III International Maritime Organisation emissions standards, Transocean said.
“We are extremely pleased to announce that we have entered into an agreement with Chevron to construct and operate the industry’s most capable ultra-deep-water drillship,” said Jeremy Thigpen, President and CEO.
“Transocean has a long and storied history of introducing new technologies which enable our customers to access the world’s most challenging reservoirs safely and efficiently. Adding to that history, we are proud to be delivering the industry’s first rig capable of drilling and completing wells requiring subsea equipment rated to 20,000 psi.”
Source: Offshore Energy Today