Transocean secures new contract for Deep Sea Asgard at $505,000 per day

Offshore drilling company Transocean has secured a new contract for its ultra-deepwater drillship Deep Sea Asgard at a daily rate of $505,000, marking a significant increase from the previous rate of $440,000. The 365-day extension, awarded by Hess in the Gulf of Mexico, highlights the strong demand for high-spec floaters in the market. Transocean’s total backlog as of April 17, 2024, stands at approximately $8.9 billion, indicating a positive outlook for the company.

Transocean CEO Jeremy Thigpen expressed optimism about the future demand for offshore rigs and expects to secure more long-term contracts in the coming months. With the industry facing a downturn since 2014, the recent contracts secured by Transocean and competitor Valaris at rates above $500,000 per day suggest a positive trend in the offshore drilling sector. Thigpen emphasized the company’s focus on operational delivery and maximizing the conversion of backlog into cash.

Competitor Valaris also announced a 60-day option for one of its drillships at a daily rate of US$497,000 off the coast of Brazil. The market for high-spec floaters continues to demonstrate tightness, with demand for 6th and 7th generation rigs driving up daily rates. Both Transocean and Valaris are positioning themselves to capitalize on the improving market conditions and secure profitable contracts in the near future.

Source .