Offshore staff
The Petroleo Brasileiro SA (Petrobras) board of directors has approved contract awards for five of the company's rigs. The contracts total 19 rig years and an estimated $985 million in revenues, excluding revenues for mobilization, demobilization, performance bonus opportunities, and client reimbursables. The company approved contracts for the drillshipsDeepwater Navigator and Peregrine I and semisubmersible rigs Sedco 707, Sedco 710, and Transocean Driller. Each rig is in Brazil, and all of the units with the exception of the Peregrine I are currently under contract to Petrobras.
The contract approved for theDeepwater Navigator, a dynamically positioned drillship capable of drilling in water depths of up to 2,000 m, has a four-year term, which will begin in October 2006, in direct continuation of the rig's current and expected contract commitments. Estimated revenues of $263 million could be generated over the four-year contract period.
Petrobras approved a three-year contract for thePeregrine I, a dynamically positioned drillship capable of drilling in water depths of up to 1,500 m, which will start in November 2005, following an estimated 120-day planned upgrade in a shipyard in Brazil, where the rig is currently idle. Estimated revenues of $123 million could be generated over the three-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 20%.
The contract approved for theSedco 707, a dynamically positioned semisubmersible rig capable of drilling in water depths of up to 2,000 m, is for four-years and should begin in January 2006, following the completion of the rig's current contract commitment and an estimated 60-day planned shipyard program. Estimated revenues of $263 million could be generated over the four-year contract period.
Petrobras also approved a four-year contract for theSedco 710, a dynamically positioned semisubmersible rig capable of drilling in water depths of up to 1,200 m. The contract should start in October 2006, in direct continuation of the rig's current contract commitment. Estimated revenues of $175 million could be generated over the four-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 10%.
The contract approved for theTransocean Driller, a semisubmersible rig capable of drilling in water depths of up to 1,050 m, has a four-year term, which is expected to begin in August 2006, in direct continuation of the rig's current contract commitment. Estimated revenues of approximately $161 million could be generated over the four-year contract period. Additional revenues are possible through a performance bonus opportunity of up to 10%.
The approved contracts have not yet been executed. Transocean expects that the contracts will be signed in the next 30 to 60 days.
TheDeepwater Navigator, Peregrine I, Sedco 707, and Sedco 710 are four of 32 high-specification rigs in the Transocean Inc. fleet, 28 of which are deepwater rigs capable of drilling in water depths of 1,370 m and greater. The Transocean Driller is one of 24 other floaters in the company's fleet that service the mid-water segment of the market.
06/22/05
