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Transocean (RIG) Takes Delivery of First-Ever 8th-Gen Drillship

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Transocean Ltd. (RIG - Free Report) , a Vernier, Switzerland-based American offshore driller, recently accepted the delivery of the world's first eighth-generation drillship — Deepwater Atlas — by the Singapore-headquartered shipbuilder, Sembcorp Marine.

Deepwater Atlas is the first of the two ultra-deepwater drillships built for Transocean, based on Sembcorp’s Jurong Espadon 3T design. Deepwater Titan is the second one.

The commissioned drillships have the highest specifications, net three-million-pound hook-load hoisting capacity and well-control systems, with the ability to accommodate 20,000-psi (pounds per square inch) drilling and completion operations. As of now, the drillship has a 15,000-psi blowout preventer.

The drillship is capable of operating at 12,000 feet (3657.6 meters) of water depth and drilling to depths of about 40,000 feet (12192 meters). Moreover, the use of hybrid power with an energy storage system enables the drillship to operate with lower levels of emissions.

Designed and equipped to optimize fuel consumption and lessen emissions, the rig can accommodate a crew of 220 people.

RIG had placed an order for both Deepwater Titan and Deepwater Atlas in 2014 for $540 million each, but the deliveries were delayed for several reasons. After several postponements, it was agreed that one of the rigs would be delivered in December 2021, while the other would be delivered in May 2022. However, neither of the deadlines were met, and Deepwater Atlas is the first drillship delivered with a contract already lined up.

Last year, Deepwater Atlas won a contract with Beacon Offshore Energy for drilling on the Shenandoah project in the U.S. Gulf of Mexico. The drillship is anticipated to start drilling for Beacon in the late fourth quarter of this year.

The day rate for Deepwater Atlas is $315,000 until the third quarter of 2023, with the second drillship — Deepwater Titan — contracted to Chevron for five years also in the Gulf of Mexico commencing in the first quarter of 2023 at $455,000 per day.

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 a particular emphasis on ultra-deepwater and harsh environment drilling services) to exploration and production companies worldwide.

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