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Transocean Unveils World's First Hybrid Energy Storage Unit

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Transocean Limited’s (RIG - Free Report) latest activity marked the world’s first deployment of hybrid energy storage system on a floating drilling vessel. This power system is operational on 2009-built semi-submersible rig Transocean Spitsbergen situated at the Equinor (EQNR - Free Report) -operated Snorre field offshore Norway.

This hybrid power equipment is designed in a way so that it lowers fuel utilization along with improving maintenance of the rig’s station-keeping position by accumulating all the energy generated from usual rig activities.

This important operational and safety enhancement technology innovated by Transocean in association with systems integrator and engineering company Aspin Kemp and Associates targets a 14% drop in fuel consumption during normal operations, thereby leading to an evident decline in NOx and CO2 emissions. Transocean’s capital will be partly financed by the Norwegian NOx Fund and through fuel-saving incentives in its contract with Equinor.

Transocean is the world’s largest offshore drilling contractor and the leading provider of drilling management services. The company provide 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.

However, the company is grappled with a huge debt burden. Notably, Transocean’s long-term debt deteriorated to $9.4 billion as of Jun 30, 2019 from $7.1 billion in 2017. The company’s insufficient level of contracting activity is a concern as well. Over the last year, it has received only two major drilling contracts from Petrobras (PBR - Free Report) and Chevron (CVX - Free Report) .  

Nonetheless, Transocean's robust backlog of $11.4 billion reflects steady demand from customers and offers earnings as well as cash flow visibility.

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