Actionable news
0
All posts from Actionable news
Actionable news in RIG: TRANSOCEAN Ltd.,

Transocean: Updated

The following excerpt is from the company's SEC filing.

Revisions Noted in Bold

Dynamically positioned

Dayrate on

Estimated Out of Service Days

Drilling

Current

Previous

Footnote

Floater

Entered

Contract

Expiration

Contract

Rig Type/Name

References

Positioned

(Feet)

Location

Customer

Start Date

(Dollars)

Rigs Under Construction (11)

Deepwater Proteus

(6), (11)

12,000

40,000

Q2 2016

Q2 2026

519,000

Deepwater Pontus

Q4 2017

Q4 2027

Deepwat er Poseidon

Q1 2018

Q1 2028

Deepwater Conqueror

(6), (8), (11)

Chevron

Q4 2016

Q4 2021

589,000

JSPL Ultra-Deepwater Drillship TBN 1

(9)

JSPL Ultra-Deepwater Drillship TBN 2

Transocean Cepheus

(12)

35,000

Transocean Cassiopeia

Transocean Centaurus

Transocean Cetus

Transocean Circinus

Ultra-Deepwater (28)

Deepwater Thalassa

(6)

Feb-16

Feb-26

Deepwater Asgard

(8)

Apr-15

Jun-17

615,000

600,000

Deepwater Invictus

(6), (16)

BHP Billiton

Jul-14

May-16

592,000

Trinidad

Aug-16

350,000

Sep-16

Jul-17

Discoverer Americas

Stacked

Deepwater Champion

Discoverer Clear Leader

(6), (8), (15)

Nov-14

Oct-18

581,000

569,000

Discoverer Inspiration

Mar-15

Mar-20

585,000

523,000

Dhirubhai Deepwater KG1

(6), (7), (8)

Brazil

Petrobras

Dec-14

Dec-17

402,000

510,000

21

Dhirubhai Deepwater KG2

Nov-16

Not Disclosed

5

7

Discoverer India

(14)

Reliance

Sep-13

528,000

499,000

Jan-21

508,000

Petrobras 10000

(6), (7), (8)

37,500

Feb-11

Aug-19

423,000

Discoverer Deep Seas

Discoverer Enterprise

Discoverer Spirit

GSF C.R. Luigs

GSF Jack Ryan

Deepwater Discovery

30,000

Deepwater Frontier

Deepwater Millennium

Deepwater Pathfinder

Cajun Express

Deepwater Nautilus

Aug-12

Aug-17

472,000

551,000

Discoverer Luanda

(6), (13)

Angola

Jan-11

Jan-18

487,000

GSF Development Driller I

GSF Development Driller II

Development Driller III

(6), (15)

Nov-09

422,000

Sedco Energy

Sedco Express

Total Estimated Days Out of Service

26

Estimated Average Contract Dayrate

490,000

493,000

491,000

Harsh Environment (7)

Transocean Barents

Transocean Spitsbergen

Henry Goodrich

1985/2007

Canada

May-18

275,000

74

37

Transocean Leader

1987/1997

25,000

Enquest

May-15

335,000

377,000

(17)

May-19

305,000

Paul B. Loyd, Jr.

(7)

Mar-16

442,000

434,000

11

Mar-17

449,000

456,000

Transocean Arctic

Faroe Petroleum

Jul-16

393,000

179,000

(7), (18)

Det Norske

176,000

Polar Pioneer

85

321,000

403,000

Deepwater (5)

Transocean Marianas

1979/1998

Sedco 706

1976/1994/ 2008

May-14

279,000

361,000

273,000

Sedco 702

1973/2007

Jack Bates

1986/1997

Australia

195,000

370,000

M.G. Hulme, Jr.

1983/1996

Apr-16

163,000

31

15

310,000

226,000

242,000

274,000

Midwater Floaters (10)

Transocean Driller

Jul-10

Jun-16

215,000

116,000

GSF Rig 140

Oil India Ltd.

158,000

Sedco 711

Sedco 712

Talisman

Oct-15

397,000

Oct-16

409,000

Sedco 714

1983/1997

Actinia

Jun-19

101,000

Transocean Winner

Marathon

Aug-15

495,000

419,000

Transocean Searcher

1983/1988

Transocean Prospect

1983/1992

Sedco 704

1974/1993

Zennor Petroleum

160,000

219,000

295,000

263,000

147,000

High Specification Jackups (10)

GSF Constellation I

(21)

Bunduq

Dec-16

150,000

19

GSF Constellation II

(19)

VAALCO

Oct-14

170,000

165,000

GSF Galaxy I

1991/2001

Nov-15

217,000

208,000

228,000

May-17

231,000

GSF Galaxy II

GSF Galaxy III

Transocean Honor

194,000

155,000

GSF Monarch

Transocean Andaman

Thailand

May-13

115,000

Transocean Siam Driller

Mar-13

Mar-18

140,000

Transocean Ao Thai

Oct-13

139,000

3

149,000

142,000

142

78

Fixed-Price Options - See Footnote 10

Sep-17

463,000

Jun-18

470,000

206,000

Oct-17

Revenue Efficiency

Revenue efficiency is defined as actual contract drilling revenues for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding amounts related to incentive provisions. Revenue Efficiency does not apply during Out of Service Days (Shipyard, Mobilizations, Demobilizations, Contract Preparation).

Q4 2015 Actual

Q3 2015 Actual

Q2 2015 Actual

Q1 2015 Actual

Q4 2014 Actual

Q3 2014 Actual

Q2 2014 Actual

Q1 2014 Actual

Ultra-Deepwater Floaters

Harsh Environment Floaters

100.3%

100.5%

High-Specification Jackups

Total Fleet

Estimated Contract Drilling Revenue can be calculated as: Paid Days on Contract * Average Contract Dayrate * Revenue Efficiency

Stacked Rigs (22)

Jun-15

Jul-15

Sep-15

Dec-15

Jan-16

Idle Rigs (6)

Sedco 702

Footnotes

Dates shown are the original service date and the date of the most recent upgrade, if any.

Estimated Contract Start and Estimated Expiration Dates are calculated as follows: (1) for events estimated to occur between the 1st and 15th of a month, the previous month is reported (i.e. a contract which is estimated to commence on May 4, 2016 will be reported as commencing in April 2016) and (2) for events estimated to occur between the 16th and the end of a month, the actual month is reported (i.e. a contract which is estimated to commence on May 24, 2016 will be reported as commencing in May 2016). Expiration dates represent the company's current estimate of the earliest date the contract for each rig is likely to expire. Some rigs have two or more contracts in continuation, so the last line shows the estimated earliest availability. Many contracts permit the customer to extend the contract.

Represents the full operating dayrate, although the average dayrate over the term of the contract will be lower and could be substantially lower. Does not reflect incentive programs which are typically based on the rig's operating performance against a performance curve. Please refer to the “Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations” section of the Disclaimers & Definitions for a description of dayrates. This column may not reflect the rate currently being received under the contract as a result of an applicable standby rate or other rate, which typically is less than the contract dayrate.

The out of service time represents those days where a rig is scheduled to be out of service and not be available to earn an operating dayrate. Please refer to the “Out of Service Days (Shipyards, Mobilizations, Demobilizations, Contract Preparation)” section of the Disclaimers & Definitions for a full description.

Estimated Average Contract Dayrate is defined as the average contracted full operating dayrate to be earned per revenue earning day. See note (3) for definition of full operating dayrate.

Reflects the current contracted dayrate which could reflect prior cost escalations, or de-escalations, and could change in the future due to further cost escalations, or de-escalations.

Reflects the current contracted dayrate which, along with costs, includes a foreign currency component. Changes in the value of the U.S. Dollar relative to certain foreign currencies will result in an adjustment to the dayrate according to the terms of the contract. The dayrate adjustment generally offsets the foreign currency exchange-related change in costs.

Current contract provides for a bonus incentive opportunity not reflected in the current contract dayrate.

The two drillships on order from Sembcorp Marine's subsidiary, Jurong Shipyard, are expected to be delivered in the first quarter and third quarter of 2020.

Fixed price options may be exercised at the customer’s discretion. During periods when dayrates on new contracts are increasing relative to existing contracts, the likelihood of customers’ exercising fixed price options increases. During periods when dayrates on new contracts are decreasing relative to existing contracts, the likelihood of customers’ exercising fixed price options declines.

The contract is expected to start in the quarter indicated. Factors that could influence the contract start date include shipyard delivery, customer acceptance, and mobilization to operating location, among others.

The first of five newbuild high-specification jackups contracted to Keppel FELS Limited's shipyard in Singapore is expected to be delivered from the shipyard in the first quarter of 2018 and the remaining four jackups delivered at approximately six-month intervals thereafter.

The rig is owned by a joint venture in which the company owns less than a 100 percent interest. Dayrate reflects 100 percent of the contract rate.

The customer may elect to have the operating dayrate for the last five years of the contract fluctuate based on crude oil price with a floor of $458,250 corresponding to a crude oil price of less than or equal to $50 per barrel, and a ceiling of $558,250 corresponding to a crude oil price of $100 per barrel or greater.

The rig is owned by Transocean Partners LLC in which the company owns less than a 100% interest. Please refer to Transocean Partners LLC (NYSE: RIGP) Fleet Status Report which can be found at www.transoceanpartners.com.

Mobilization, customer commissioning and acceptance testing commenced in March 2014. Revenue of approximately $52 million earned from March 2014 to July 2014 will be recognized over the remaining three-year contract period ending in July 2017.

The dayrate for the last year of the contract will be set three months prior to the third anniversary of the contract commencement date, subject to a floor dayrate of $305,000 and a ceiling dayrate of $365,000, pursuant to the terms of the contract.

Dayrate will be increased when the rig is performing high-pressure high-temperature wells, or wells in the Barents Sea.

The company has received a notice of early termination from VAALCO. The drilling contract provides for a lump-sum payment for terminating for convenience.

The customer has exercised a contractual provision which allows for a standby dayrate for the remaining term.

The company has agreed with the customer to reduce the dayrate to $85,000 from $104,000 for the remaining term.

DISCLAIMERS

DEFINITIONS

The information contained in this Fleet Status Report (the “Information”) is as of the date of the report only and is subject to change without notice to the recipient. Transocean Ltd. assumes no duty to update any portion of the Information.

DISCLAIMER.

NEITHER TRANSOCEAN LTD. NOR ITS AFFILIATES MAKE ANY EXPRESS OR IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE) REGARDING THE INFORMATION CONTAINED IN THIS REPORT, WHICH INFORMATION IS PROVIDED “AS IS.” Neither Transocean Ltd. nor its affiliates will be liable to any recipient or anyone else for any inaccuracy, error or omission, regardless of cause, in the information set forth in this report or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom.

No Unauthorized Publication or Use.

All information provided by Transocean in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Transocean.

Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations.

The duration and timing (including both starting and ending dates) of the customer contracts are estimates only, and customer contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Transocean. Also, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.) including some beyond the control of Transocean. Our customer contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in our filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC’s website at www.sec.gov. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, shipyards or recharges.

Out of Service Days (Shipyards, Mobilizations, Demobilizations, Contract Preparation).

Changes in estimated out of service time are noted where changes in the time Transocean anticipates that a rig is scheduled to be out of service and not be available to earn an operating dayrate have changed by a period of

15 days or longer

for all rig classifications since the previously issued Monthly Fleet Update Summary or Comprehensive Fleet Status Report. The changes to estimated out of service time included in this Fleet Status may not be firm and could change significantly based on a variety of factors. Any significant changes to our estimates of out of service time will be reflected in subsequent Monthly Fleet Updates and Comprehensive Fleet Status Reports, as applicable.

Contract Preparation refers to periods during which the rig is undergoing modifications or upgrades as a result of contract requirements. Shipyards refers to periods during which the rig is out of service as a result of other scheduled shipyards, surveys, repairs, regulatory inspections or other scheduled service or work on the rig.

In some instances such as certain mobilizations, demobilizations, upgrades and shipyards, we are paid compensation by our customers that is generally recognized over the life of the primary contract term of the drilling project, although such compensation is not typically significant in relation to the revenues generated by the dayrates we charge our customers. When mobilization or demobilization occurs during a contract period, we recognize revenues as earned. In instances where mobilization or demobilization time occurs before or between the start of a contract period, the stated estimated contract start date represents the expected commencement date for the primary contract term of the drilling project and the point at which we expect to begin recognizing revenues.

Forward-Looking Statement.

The statements made in the Fleet Update that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements made in the Fleet Update include, but are not limited to, statements involving the estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations and planned shipyard projects and other out of service time. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, competition and market conditions in the contract drilling industry, shipyard delays, actions and approvals of third parties, possible cancellation or suspension of drilling contracts as a result of mechanical difficulties or performance, Transocean’s ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations and the outcome of negotiations with unions representing workers, operating hazards, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, terrorism, political and other uncertainties inherent in non-U.S. operations (including the risk of war, civil disturbance, seizure or damage of equipment and exchange and currency fluctuations), the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors described above and discussed in Transocean’s most recently filed Form 10-K, in Transocean’s Forms 10-Q for subsequent periods and in Transocean’s other filings with the SEC, which are available free of charge on the SEC’s website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward looking statements, except as required by law.

Fleet Classifications.

Transocean uses classifications for its drillships, semisubmersibles, and jackup rigs. The classifications reflect the company’s strategic focus on the ownership and operations of premium, high- specification units and are as follows: “Ultra-Deepwater” are the latest generation of drillships and semisubmersible rigs and are capable of drilling in water depths equal to or greater than 7,500 feet; “Deepwater” rigs are drillships and semisubmersible rigs capable of drilling in water depths equal to or greater than 4,500 feet and less than 7,500 feet; “Harsh Environment” are premium rigs equipped for year-round operations in harsh environments; “Midwater Floaters” are semisubmersible rigs capable of drilling in water depths up to 4,499 feet; and "High-Specification Jackups" are high

‑performance, independent cantilever jackup rigs that are capable of drilling in water depths of 350’ or greater.

Stacking.

An "Idle" rig is between contracts, readily available for operations, and operating costs are typically at or near normal levels. A "Stacked" rig, on the other hand, is manned by a reduced crew or unmanned and typically has reduced operating costs and is (i) preparing for an extended period of inactivity, (ii) expected to continue to be inactive for an extended period, or (iii) completing a period of extended inactivity. However, stacked rigs will continue to incur operating costs at or above normal operating costs for 30 to 60 days following initiation of stacking.

The above information was disclosed in a filing to the SEC. To see the filing, click here.

To receive a free e-mail notification whenever Transocean Ltd. makes a similar move, sign up!

Other recent filings from the company include the following:

Transocean: Form, Schedule Or Registration Statement No Filing Party: Date Filed: - April 21, 2016
Transocean Ltd. Announces Ultra-Deepwater Drillship Delay - April 19, 2016
BlackRock, Inc. just provided an update on share ownership of Transocean Ltd. - April 8, 2016