Transocean dodges $1.1 billion in future costs by relinquishing interests in two drillships

Transocean announced that two of its indirect, wholly-owned subsidiaries will relinquish their respective interests in two drillships under construction – the Ocean Rig Santorini and the Ocean Rig Crete – to Samsung Heavy Industries Co., Ltd. (“SHI”). Upon relinquishment of the drillships, Transocean’s indirect, wholly-owned subsidiaries will not make further payments to SHI under the construction contracts.

The total estimated future costs associated with the delivery and placing the drillships into service would have been approximately $1.1 billion, which includes future payments to SHI under the construction contracts and costs related to spares, materials and supplies, and to the commissioning and mobilization of the rigs. The construction contracts are not guaranteed by Transocean Ltd. or any of its affiliates.

Source: WorldOil