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Transocean Strengthens Backlog With Equinor's Contract Extension

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Key Takeaways

  • RIG lands a contract extension from EQNR for its Spitsbergen rig on the Norwegian Continental Shelf.
  • The extension adds $100M to RIG's backlog, building on its previously reported $7.9B as of April 2025.
  • Transocean Spitsbergen can drill 30,000 feet and operate in harsh, deepwater environments up to 10,000 feet.

Transocean Inc. (RIG - Free Report) , a leading global offshore drilling contractor, has won a contract extension for its semi-submersible rig, Transocean Spitsbergen, offshore Norway. Equinor ASA (EQNR - Free Report) has exercised a two-well option, extending the semi-submersible rig’s existing program with the company in the Norwegian Continental Shelf (“NCS”).

The work for this extension is expected to start in the first quarter of 2026 in direct continuation of the rig’s current program. The contract extension will add $100 million to Transocean's current backlog, excluding additional services. Transocean’s fleet status report from April 2025 mentioned that its current backlog was $7.9 billion.

The Transocean Spitsbergen semi-submersible rig boasts an Aker H-6e design. The rig is capable of operating in high-pressure and harsh environments. The rig can operate in water depths of up to 10,000 feet and has a maximum drilling depth of 30,000 feet. The rig can accommodate 140 people and has been under contract with Equinor for several years.

Zacks Rank & Key Picks

Both RIG and EQNR currently carry a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Flotek Industries Inc. (FTK - Free Report) and Energy Transfer (ET - Free Report) . While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. Flotek develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.

Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 130,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, ET’s outlook seems positive.

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