Transocean Inc announced that Statoil (STO)
on behalf of a consortium consisting of Statoil, Eni, Norsk Hydro and Shell has awarded multi-year contracts valued at an estimated $700 million in revenues for the company's High-Specification semisubmersible rigs Transocean Arctic and Polar Pioneer.
The Transocean Arctic has been awarded an estimated 50-month contract for drilling, completion and intervention work on the Norwegian Continental Shelf. The contract is expected to commence in the third quarter of 2006 following completion of the rig's current contract offshore Norway, also with Statoil. Revenues of approximately $395 million could be generated over the estimated 50-month contract period.
The Polar Pioneer has been awarded an estimated 36-month contract for exploration drilling, including high-pressure and high-temperature wells and Barents Sea operations, as well as field development drilling on the Norwegian Continental Shelf. The estimated 36-month contract is expected to commence in April 2006 following the completion of the rig's current contract with Statoil, also offshore Norway. Revenues of approximately $306 million could be generated over the estimated 36-month contract period.
Estimated revenues associated with each contract are exclusive of revenues for client reimbursables. A portion of the revenues are to be paid in local currency, and these estimates are based upon current exchange rates.
The semisubmersible rigs Transocean Arctic and Polar Pioneer are two of 32 High-Specification Floaters in the Transocean Inc.
fleet. The rigs are primarily utilized for drilling operations in harsh environments like Norway where
both units have operated since entering active service in 1987 and 1986, respectively.