The Sedco Express News

Transocean announced its intent to retire the ultra-deepwater floaters GSF Jack Ryan, Sedco Energy, Sedco Express, Cajun Express, and Deepwater Pathfinder, and the deepwater floater Transocean Marianas. The rigs will be classified as held for sale and will be recycled in an environmentally responsible manner. All six rigs were previously cold stacked. The company will recognize an impairment charge of approximately $1.4 billion during the third quarter of 2017 associated with these actions. “We continue to enhance the quality of our fleet through the addition of new, high-specification assets, and the retirement of older, less competitive rigs,” said Jeremy Thigpen, President and Chief Executive Officer.

Transocean Ltd today 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 the February 17, 2015 Fleet Update Summary. The total value of new contracts since the last report is approximately $9 million. •             Sedco Express - Awarded a one-well contract extension offshore Nigeria at a dayrate of $300,000 ($9 million estimated backlog). •             Henry Goodrich is idle. •             Ultra-deepwater floaters Discoverer Spirit, GSF Jack Ryan, Deepwater Discovery, and Deepwater Pathfinder are stacked. The rigs were previously idle. •             Estimated 2015 planned out-of-service time decreased by a net 102 days, mainly associated with the Henry Goodrich.

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 October 15, 2014. The total value of new contracts since the October 15, 2014 Fleet Status Report is approximately $83 million. - Discoverer Enterprise - Awarded a one-well contract extension in the U.S. Gulf of Mexico at a dayrate of $399,000 ($32 million estimated backlog). The rig's prior dayrate was $615,000. - GSF Galaxy III - Awarded a four month contract as an accommodation unit in Denmark at a dayrate of $175,000 ($23 million estimated backlog). The rig's prior dayrate was $160,000.

Transocean Ltd. (NYSE:RIG) announced that a subsidiary of Noble Energy, Inc. (NYSE:NBL) has awarded a 455-day contract for the ultra-deepwater semisubmersible rig Sedco Express. Estimated contracted revenues related to the 455-day contract term are approximately $241m. Estimated contract revenues represent the maximum amount of revenues that may be earned in the firm contract period, excluding revenues for mobilization, cost escalations, customer reimbursed equipment and miscellaneous adjustments. The contract term is expected to commence in the third quarter of 2010 following the completion of the rig's current contract, maintenance work and mobilization.

Transocean Sedco Forex Inc., announced that it has been awarded new contracts for its high-specification semisubmersible rigs Cajun Express and Sedco Express. Ocean Energy Inc. for ultra-deepwater drilling operations on the company's South Titan prospect located in approximately 6,200 feet of water in the U.S. Gulf of Mexico. The contract should commence following the completion of the rig's current drilling assignment with Ocean Energy in the U.S. Gulf of Mexico. Revenues to be generated over the estimated 40-day contract period could total approximately $6 million. The Sedco Express has been awarded a three-well, estimated 130-day contract from a unit of BP for drilling operations in the Eastern Mediterranean offshore the coast of Egypt in waterdepths between 2,600 feet and 3,280 feet.

Six diesel-fueled Caterpillar 3616 engines will provide more than 26 MW of safe, reliable electricity to power three technologically-advanced, deepwater semisubmersible drilling rigs from Schlumberger Desco Forex. Two of these rigs are currently being built at French DCN Brest shipyard, with a third undergoing construction at Singapore-based PPL. Compared to usual semis, Sedco Express is designed with a lower center of gravity, a feature that provides more stability, increased deck load capacity and less noise. Rated at 4.4 MW of continuous power, each engine has been combined to form a completely redundant power supply and distribution system - a main factor required for DPS3 certification.

Transocean Sedco Forex is a leading international provider of deepwater and harsh environment contract drilling services for oil and gas wells. The company’s active fleet consists of 12 high-specification semisubmersibles, 29 second- and third-generation semisubmersibles, two Discoverer Enterprise-class drillships, four other drillships, 17 jackup rigs and three tenders. The company has under construction one Discoverer Enterprise-class drillship and three Sedco Express- class semisubmersibles. In addition, the fleet includes one mobile offshore production unit, six swamp barges and two land drilling rigs. In January 2001, the company completed the acquisition of R&B Falcon Corp., which operates a fleet of 139 marine-based drilling rigs. On Feb.

Schlumberger Limited and Transocean Offshore Inc. have signed a definitive merger agreement under which the offshore contract drilling business of Schlumberger (Sedco Forex Offshore) will be spun off and promptly combined with Transocean Offshore in a merger of equals. The resulting company, Transocean Sedco Forex, will be the world's largest offshore drilling company and is projected to become the fourth largest oilfield service company in terms of market capitalization. The transaction, which should close by December 31, 1999, is anticipated to be modestly dilutive to Transocean Offshore's current earnings expectations for 2000 and accretive thereafter.

The growing uptake of integral electric-driven, podded propulsors in the most capital-intensive sector of the cruise shipping industry, has forever altered the established position of conventional propulsion systems in an important segment of the market. Having established a foothold in the offshore sector, the concept will no doubt find increasing application with the next upswing in investment by the offshore oil and gas industry. Once conservatism has been overcome in various quarters of the shipping business, and once the net acquisition costs of such systems reach more acceptable levels for a broader band of the shipowning community, usage of the technology will no doubt spread to other spheres.