Transocean Ltd. ( RIG Quick Quote RIG - Free Report) recently secured a firm contract worth $252 million for its new-build ultra-deepwater drillship the Deepwater Atlas from BOE Exploration & Production LLC (BOE), which includes a $30-million mobilization fee. A hefty performance bonus based on agreed-upon operating indicators is also included in the contract. This award is the outcome of BOE and the Shenandoah working interest owners' final investment decision to sanction the previously announced Shenandoah project in the United States Gulf of Mexico. The Shenandoah program is divided into two sections. The Deepwater Atlas is scheduled to begin operations in the third quarter of 2022 after its delivery from the shipyard, initially with dual blowout preventers (BOP) rated to 15,000 psi. The initial drilling operation will take about 255 days to complete and generate nearly $80 million of contract drilling revenues. A 20,000 psi BOP will be placed on the rig after the initial drilling programme is over, thus making it Transocean's second asset with a 20,000 psi-rated well control system. The installation and commissioning of the BOP is projected to take 45-60 days with a revenue contribution of around $17 million. After the installation of the BOP, the Deepwater Atlas will begin the well-completion program, which is the second phase of the project. This phase is estimated to span roughly 275 days and reap almost $125 million of contract drilling revenues. Transocean's President and CEO Jeremy Thigpen feels that this is an important milestone for the firm, BOE and the Shenandoah partners as they jointly enter into this new realm of ultra-deepwater drilling. He went on to say that “We are extremely pleased to have secured the maiden contract for the Deepwater Atlas; the first of our two 8th generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000 psi ultra-deepwater well operations. We are very encouraged by the growing list, across multiple customers, of 20,000 psi opportunities in the U.S. Gulf of Mexico. And, with the only two assets in the world specifically designed to maximize efficiencies for 20,000 psi well completions, we are the undisputed market leader in this space, and thus excited about the future prospects for these state-of-the art assets.” Apart from the aforementioned deal, Transocean clinched drilling rig contracts worth $116 million for two of its harsh-environment semisubmersibles earlier in June. The Transocean Barents drilling rig was granted a two-well contract in Norway with drilling anticipated to begin in February 2022. The contract will last approximately 200 days and add $60 million to the firm contract backlog. In addition, Transocean Norge was assigned a four-well contract in Norway with five one-well options. The drilling is expected to start in March 2022. The contract will last nearly 200 days and add $56 million to the firm contract backlog. Company Profile Switzerland-based Transocean is the world’s largest offshore drilling contractor and a leading provider of drilling management services. The company provides rigs on a contractual basis to explore and develop oil and gas. Transocean offers offshore drilling rigs, equipment, services and manpower (with particular emphasis on ultra-deepwater and harsh environment drilling services) to exploration and production companies worldwide. Zacks Rank & Key Picks Transocean currently carries a Zacks Rank #3 (Hold). Some better-ranked players in the space are energy Devon Energy Corporation ( DVN Quick Quote DVN - Free Report) , Matador Resources Company ( MTDR Quick Quote MTDR - Free Report) and Continental Resources, Inc. ( CLR Quick Quote CLR - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .