Transocean Ltd. (NYSE: RIG) said Dec. 28 it agreed to supply a Chevron Corp. (NYSE: CVX) affiliate in the Gulf of Mexico with what Transocean’s CEO calls “the industry’s most capable ultra-deepwater drillship.”
The agreement, which includes a five-year drilling contract with Chevron USA Inc. worth $830 million, is for one of Transocean’s two dynamically positioned ultra-deepwater drillships currently under construction at the Jurong shipyard in Singapore.
The rig will be the first ultra-deepwater floater rated for 20,000 pounds per square inch (psi) operations and is expected to commence operations in the Gulf of Mexico in the second half of 2021.
Jeremy Thigpen, Transocean president and CEO, said members of Chevron and Transocean teams helped develop this “game-changing solution.”
The drillship will feature the most advanced capabilities and state-of-the-art technology available, according to the Transocean press release, 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 high-reliability power plant will also be configured to comply with Tier III International Maritime Organization emissions standards.
“Transocean has a long and storied history of introducing new technologies that enable our customers to safely and efficiently access the world’s most challenging reservoirs,” Thigpen said in a statement. “Adding to that history, we are proud to be delivering the industry’s first rig capable of drilling and completing wells requiring subsea equipment rated to 20,000 psi.”
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.