Transocean scraps 19th rig

April 17, 2015

The GSF Explorer drillship is next on the chopping block as Transocean decides to scrap its 19th rig, causing an estimated US$120 million hit to the company.

The Transocean Sedco Express was awarded a 45-day contract. Image from Transocean.

The global rig provider said that its 2Q 2015 results are expected to include a related non-cash charge of $110-$120 million, net of taxes.

The GSF Explorer follows a long list of recent rigs the company will no longer be using.

Earlier this month, the GSF Aleutian Key and Sedco 707 were announced to head to the scrap yard.

In March, four other rigs, the Deepwater Expedition, Transocean Legend, Transocean Rather, and GSF Arctic III were decided to be scrapped.

In December and January, Transocean said it would scrap only 12 lower-specification deepwater and mid-water rigs, including the Discoverer Seven Seas, Sedco 710, Sovereign Explorer, Sedco 700, Sedco 601, J.W. McLean, GSF Arctic I, Falcon 100, Sedneth 701, Sedco 703, Sedco 709, and C. K. Rhein, Jr. However, in four month’s time, the number quickly rose to 19.

It wasn’t all scrap news in Transocean’s fleet report. The company announced two new contracts for the Sedco Express and GSF Galaxy II worth approximately $26 million.

The Sedco Express was awarded a 45-day contract extension offshore Nigeria at a dayrate of $300,000, an estimated $14 million in backlog.

The GSF Galaxy II was awarded a two-month contract extension in the UK sector of the North Sea at a dayrate of $190,000, an estimated $12 million backlog.

In addition, the Sedco Energy was released early from its contract, and the Discoverer Enterprise, Sedco Energy, Transocean Amirante, and GSF Galaxy III are idle.

Read more:

Rigs scrapping continues

Categories: North America Rigs Vessels


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