Transocean Boosts Backlog with $1B Drilling Rig Contract Awards

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Transocean Barents semi-sub rig (Credit: Transocean)
Transocean Barents semi-sub rig (Credit: Transocean)

Offshore drilling contractor Transocean has secured new rig contracts and extensions worth about $1 billion in backlog, while also retiring $358 million in senior secured notes as part of its deleveraging strategy.

The company was awarded a 1,095-day contract for the Transocean Barents semisubmersible with Vår Energi in Norway, at a day rate of $450,000. The contract is expected to begin by mid-second quarter 2027 and contribute around $490 million in backlog, excluding additional services. Options could extend the rig’s work into 2034.

In Brazil, the Deepwater Orion drillship secured a 1,095-day extension with Petrobras, adding about $420 million in backlog and keeping the rig contracted through March 2030.

The Deepwater Aquila drillship also received a 365-day extension with Petrobras, expected to add around $160 million in backlog and extend its contract to June 2028.

Separately, Transocean said it fully retired its 8.375% senior secured notes due 2028, known as Titan Notes, on March 20, using cash on hand and funds from a debt service reserve account.

The company said the move is expected to save about $39 million in interest expenses and forms part of its strategy to reduce debt and simplify its balance sheet.

Transocean expects to retire a total of about $750 million in debt during 2026, excluding any additional early repayments.

The company operates a fleet of 27 offshore drilling units, including 20 ultra-deepwater floaters and seven harsh environment rigs.

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