Intelligence Oilfield Services

Transocean’s $518MM contract off Mexico reflects revived market

byJoseph Gyure, Editor, Enverus Intelligence

Transocean Ltd. secured a 1,080-day contract for a high-specification seventh-generation ultra-deepwater drillship in the Mexican sector of the Gulf of Mexico (GOM) at one of the highest day rates the company has commanded in years. The contract will contribute $518 million in backlog, excluding revenue for mobilization and demobilization, meaning the drillship will collect roughly $480,000/day for three years.

One of three drillships will be selected by Transocean from among Deepwater Invictus, Deepwater Thalassa and Deepwater Proteus no later than one year prior to the earliest date in the commencement window of 4Q25-2Q26. The contractual day rate is subject to a semi-annual cost adjustment mechanism with a baseline established as of July 1, 2023. There are no additional services provided under the contract.

“This award is especially encouraging on numerous fronts,” CEO Jeremy Thigpen said. “The fact that our customers are securing rigs well in advance of their programs and committing to long-term contracts clearly demonstrates the tightness of the market. Additionally, our ability to designate the specific rig closer to the commencement of the program provides us with increased flexibility to optimize the utilization of our high-specification fleet of ultra-deepwater drillships.”

transocean-drillship-contract

Transocean has four drillships currently collecting day rates around $480,000 from Shell in the U.S. GOM, but all four are on 10-year contracts signed between July 2016 and September 2018, before the offshore drilling market went into a multi-year slump. The four high-earnings rigs are the Deepwater Poseidon, Deepwater Pontus, Deepwater Thalassa and Deepwater Proteus.

This June, Transocean received a 16-well binding award for the harsh-environment semisubmersible Transocean Equinox in Australia, where it will work for a consortium of four operators at a day rate of roughly $485,000. This award is expected to commence in 1Q25. No Transocean semisub is currently working for more than $418,000/day.

Transocean landed a 16-well binding award in June for the harsh-environment semisubmersible Transocean Equinox in Australia, with a day rate of around $485,000. Click for more (available to Enverus Intelligence Publications subscribers)!

About Enverus Intelligence Publications
Enverus Intelligence Publications presents the news as it happens with impactful, concise articles, cutting through the clutter to deliver timely perspectives and insights on various topics from writers who provide deep context to the energy sector.

Picture of Joseph Gyure, Editor, Enverus Intelligence

Joseph Gyure, Editor, Enverus Intelligence

Joseph Gyure has covered midstream and oilfield services since 2017 and joined Enverus from PLS. He previously worked at ICIS, the Houston Chronicle, and the Waco Tribune-Herald. Joseph is a graduate of the University of Texas at Austin.

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