Transocean awarded BP drilling contract

Switzerland-based offshore drilling contractor Transocean has landed a new long-term assignment with the UK-headquartered oil major BP for the first of two eighth-generation drillships to join its rig fleet, which was described as the world’s first drillship with a three-million-pound hook-load and 20,000 psi well control system upon delivery.

The 365-day contract, which includes a 365-day option, will bring Transocean $232 million in backlog, excluding a mobilization fee, for the work its Deepwater Atlas ultra-deepwater drillship will carry out for BP in the U.S. Gulf of Mexico. The start of the rig’s new job with the European oil major is scheduled for the second quarter of 2028. The offshore drilling giant explains that no additional services will be provided under the contract.

Following a naming ceremony, which was held in late April 2022, Transocean welcomed the Deepwater Atlas drillship to its fleet of rigs in June 2022. The rig was built by Seatrium, which at the time was known as Sembcorp Marine, at Jurong Shipyard. The second eight-generation drillship, Deepwater Titan, was delivered to Transocean at the end of December 2022.

The arrival of these drillships in the U.S. Gulf of Mexico marked the beginning of a high-pressure, high-temperature development era since the first-of-their-kind eighth-generation drillships offer 20,000-psi well control capabilities and a 3.4-million-pound-hoisting capacity.

The reason why these features are considered to be a game-changer in the drilling of deepwater wells lies in the improved capabilities and tools which are missing in previous generations, as seventh-generation rigs have 2.5-to-2.8-million-pound hoisting capacity, and 15,000 psi well control systems in water depths up to 12,000 feet while sixth-generation rigs offer a hoisting capacity of up to 2.0 million pounds and are rated for water depths up to 10,000 feet.

Designed and equipped to optimize fuel consumption, reduce emissions, and minimize the associated carbon footprint of each offshore project, both eight-generation drillships can operate at 12,000 feet of water depth and drill to depths of 40,000 feet.

Before taking delivery of the Deepwater Atlas drillship, Transocean secured a drilling assignment for the rig in August 2021 with Beacon Offshore on the Shenandoah project located 160 miles off the coast of Louisiana in the Walker Ridge area of the Gulf of Mexico.

The drillship started working for Beacon in August 2022 with a day rate of $315,000, which was to remain in force until June 2023, when the rig was slated for the 20,000 psi BOP installation and, starting from September 2023, the day rate was scheduled to increase to $455,000. The end date was set for June 2024.

However, Transocean’s latest fleet status report from July 2024 shows that the rig could stay with Beacon until January 2027 at which point the day rate is expected to have steadily risen to $650,000.

The offshore drilling player owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units (MODUs) comprising 26 ultra-deepwater floaters and eight harsh environment floaters.

The Deepwater Atlas drillship’s deal with BP comes a week after another one of Transocean’s drillships secured a multimillion-dollar contract for work off the coast of India.

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