Transocean Secures Offshore Drilling Contract at $505,000 Day Rate

Offshore drilling contractor Transocean has announced securing an offshore drilling contract above the highly coveted $500,000 day rate mark amid continued demand for high-specification floaters.

Transocean secured a 365-day contract extension for its ultra-deepwater drillship Deepwater Asgard at a rate of $505,000 per day. The contract was awarded by Hess in the Gulf of Mexico and is expected to commence in June 2024. The previous contract had a day rate of $440,000.

The agreement underscores the tightness of the high-specification floater market, said Transocean CEO Jeremy Thigpen, who noted the robust demand for high-specification 6th- and 7th-generation offshore drilling rigs and improving day rates.

As of April 17, 2024, Transocean’s total backlog was approximately $8.9 billion.

Thigpen is also optimistic about the demand outlook, expecting the award of several long-term contracts in the upcoming months.

“Looking ahead, we remain encouraged by the demand outlook and expect to see numerous long-term contracts awarded over the next several months. As we work to secure those contracts, we will remain acutely focused on operational execution across our fleet, as we endeavor to maximize the conversion of our industry-leading backlog to cash,” he said.

Meanwhile, competitor Valaris this week announced the award of a 60-day option for the VALARIS DS-17 drillship by Equinor offshore Brazil at a day rate of $497,000.

The rigs are among the first to hit the coveted $500,000 day rate mark since the start the prolonged offshore drilling industry downturn in 2014.

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