While the late 2018 oil price swoon has put a damper on an otherwise positive year for offshore energy markets, Transocean Ltd. (NYSE: RIG) ends the year on a positive, signing a construction management contract, as well as a five-year drilling contract with Chevron USA, Inc. for one of its two dynamically positioned (DP) ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore.
The drilling contract has an estimated backlog of $830 million, excluding mobilization and reimbursables.
The rig will be the first ultra-deepwater floater rated for 20,000 psi operations and is expected to commence operations in the Gulf of Mexico in the second half of 2021.
In the event of termination for convenience by the customer, 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.
The drillship will feature some advanced capabilities, 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 power plant will be configured to comply with Tier III International Maritime Organization emissions standards.