Transocean provides fleet update summary

Transocean Ltd. issued a monthly Fleet Update Summary, which includes new contracts, changes to existing contracts, and changes in estimated planned out-of-service time of 15 or more days since November 18, 2014. The total value of new contracts since the November 18, 2014 Fleet Update Summary is approximately US$453 million. The report includes the following:

• GSF Development Driller I - Awarded a two year contract in Angola at a dayrate of US$382 000 (US$279 million estimated backlog). The rig was previously idle.
• Jack Bates - Customer exercised a nine month option in Australia at a dayrate of US$370 000 (US$101 million estimated backlog). The rig's prior dayrate was US$420 000.
• Dhirubhai Deepwater KG2 - Awarded a five-month contract extension in India at a dayrate of US$395 000 (US$59 million estimated backlog). The rig's prior dayrate was US$510 000.
• Sedco Express - Awarded a 45 day contract in Nigeria at a dayrate of US$300 000 (US$14 million estimated backlog). The rig was previously idle.
• The Deepwater Pathfinder, Deepwater Expedition, GSF Explorer, and Discoverer Seven Seas are idle.
• Estimated 2014 planned out-of-service time increased by a net 34 days.  Estimated 2015 planned out-of-service time decreased by a net 42 days.

The company intends, in an environmentally responsible manner, to scrap the following seven lower-specification deepwater and midwater floaters: Sedco 710, Sovereign Explorer, Sedco 700, Sedco 601, J.W. McLean, GSF Arctic I, and Falcon 100.  These rigs are classified as held for sale.  Related to the scrapping of these rigs, the company expects its fourth quarter 2014 results to include an estimated non-cash charge of US$100 million to US$140 million, net of taxes. Including four rigs (Sedneth 701, Sedco 703, Sedco 709, and C. K. Rhein, Jr.) previously disclosed, Transocean has already or intends to scrap a total of 11 lower-specification floaters. As the company continues to evaluate the long-term competitiveness of its fleet, additional rigs may be identified as candidates for scrapping.

Adapted from a press release by David Bizley

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