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Offshore drilling giant Transocean Ltd. (RIG - Analyst Report) recently issued a Fleet Update Summary for the period commencing Aug 19, 2013, to date. The value of all the new deals and extensions in contracts, in the same time frame, is estimated to be roughly $64.0 million.

The update covers the company's offshore drilling rig status and contract information. Transocean informed that the expected out-of-service time for 2013 rose by one day, while for 2014 the projected out-of-service time was down by 134 days.

Per the report, Transocean Legend, a semisubmersible rig, got a contract for operating two wells located off the coast of Australia. The rig will be working at a dayrate of $425,000, higher than its previous rate of $293,000. The deal is expected to add $64 million to the existing backlog.

Moreover, Transocean revealed the suspension of contract for Sedco 710, a semisubmersible rig. The rig is expected to remain idle now.

Included in the report, Transocean Rather, a semisubmersible deepwater floater is also out of contract. Additionally, the company is willing to liquidate Falcon 100, a midwater floater.

In addition, Transocean disclosed the divestment of Trident 4 and Trident 6, two jackups.

Switzerland-based Transocean is the world’s largest offshore drilling contractor and the leading provider of drilling management services worldwide. Transocean's fleet is considered to be one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business.

However, the introduction of new and more stringent regulations due to the oil spill has made deepwater drilling activity prohibitively expensive for exploration and production companies, making many projects marginal. This could reduce the demand for deepwater drilling.

Transocean currently holds a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.  

Meanwhile, one can look at oil and gas drilling service providers like Pacific Drilling SA (PACD - Snapshot Report), Parker Drilling Co. (PKD - Snapshot Report) and Tesco Corporation (TESO - Snapshot Report) that offer value. All the stocks sport a Zacks Rank #2 (Buy).

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