Reliance awards 5 yr contract to Transocean

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Reliance Industries
Mumbai, Apr 8: Transocean Inc today announced that the ultra-deepwater drill ship Dhirubhai Deepwater KG2 (formerly Deepwater Pacific two), which is owned by a joint venture in which the company has 50 per cent interest, has been awarded a five-year drilling contract from Reliance Industries.

The contract was expected to commence in the first quarter 2010 following shipyard construction, sea trials, mobilisation to India and customer acceptance. Contract revenues which could be generated over the first six months and remaining 54 months of the contract period were estimated to be USD 90 million and USD 838 million, respectively, the Company said in a release here.

Transocean also announced that the first ultra-deepwater drill ship owned by the joint venture, Dhirubhai Deepwater KG1 (formerly Deepwater Pacific one), has now had its previously announced four-year contract extended by Reliance to five years. Contract revenues which could be generated over the first six months and remaining 54 months of this contract period are estimated to be USD 90 million and USD 838 million, respectively. The drilling contract was still expected to commence in the third quarter of 2009, following shipyard construction, sea trials, mobilisation to India and customer acceptance.

In October 2007, Transocean announced that a subsidiary exercised its option to purchase a 50 per cent interest in a joint venture company with Pacific Drilling Limited (Pacific Drilling). The joint venture company owns the two ultra-deepwater Samsung-design drill ships that are currently under construction in South Korea.

The two drill ships are currently under construction at Samsung Heavy Industries' shipyard in South Korea where the Transocean subsidiary was overseeing construction. The new drill ships feature National Oil well Varco drilling packages that include advanced offshore drilling technology, including significant off-line tubular-handling and stand-building capabilities, advanced mud system designs, advanced systems for building, storing and running several subsea trees and efficient riser and BOP (blowout preventer) handling systems. The drill ships would have a variable deckload of approximately 20,000 metric tons.

Dhirubhai Deepwater KG1 would be equipped to work in water depths of up to 12,000 feet and outfitted to construct wells up to 35,000 feet deep. The estimated delivered cost for the Dhirubhai Deepwater KG1, including customer reimbursed equipment, is approximately USD 685 million, excluding capitalised interest. Dhirubhai Deepwater KG2, which is also estimate to cost the same amount would be equipped to work in water depths of up to 10,000 feet and outfitted to construct wells up to 35,000 feet deep. Its construction was expected to be completed in the fourth quarter of 2009.


UNI

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