Offshore drilling giant Transocean (NYSE: RIG) has announced two new contract wins totalling more than $1 billion.
Petrobras 10000, the New York-listed contractor’s ultra-deepwater drillship, has been picked for work offshore Brazil by the country’s national oil company.
The contract will run for just under six years and adds an estimated $915 million in backlog.
Work is expected to commence in October 2023 and end in August 2029.
Meanwhile, Transocean’s Deepwater Conqueror vessel has been awarded a two-year deal by a major operator for work in the Gulf of Mexico.
The ultra-deepwater drillship is being contracted at $440,000 a day, with up to an incremental $39,000 per day for additional products and services.
Excluding revenue associated with the additional products and services, the new contract adds an estimated $321m.
It is expected to begin in December 2022, directly following on from the rig’s current contract.
The announcement of the two contract awards follows hot on the heels of Transocean publishing its second quarter results.
Total contract drilling revenue for the first six months of the year totalled $1.278bn, a slight drop from the $1.3 billion posted in the same period in 2021.
Contract backlog was $6.2 billion, as of Transocean’s July 2022 fleet status report.
After a brutal few years for the sector, offshore drilling is tipped to make a comeback following a return to high oil and gas prices.
Moreover, with energy security a key focus currently, many government are looking to boost domestic production of hydrocarbons.
Jeremy Thigpen, Transocean chief executive, said: “The Transocean team continued to operate at an extremely high level throughout the second quarter, once again delivering safe, reliable, and efficient operations for our customers.
“Our strong uptime performance and contractual bonus conversion resulted in revenue efficiency of approximately 98% across our global floater fleet.”
He added: “While the past eight years have been extremely challenging for the entire industry, it is clear that the recovery in offshore drilling is underway, as contracting activity, utilization rates for high-specification ultra-deepwater and harsh-environment assets, and dayrates all continue to rise. And, with a backdrop of hydrocarbon supply challenges, we are increasingly encouraged that this momentum could continue for the foreseeable future.”