Transocean And Shell Delay Ultra Deepwater Drillship

Published at 08:53AM - 26/10/15

Offshore drilling contractors, Transocean, has today announced that it has delayed the build of two new ultra-deepwater drillships.

The news comes as the offshore drilling industry continues to struggle with the heavy downturn in the global crude oil price.

In a statement, Transocean said the build of both Deepwater Pontus and Deepwater Poseidon have been postponed by 12 months.

The contracts originally stated a delivery date of, the first quarter of 2017, for the Deepwater Pontus, whilst the Deepwater Poseidon was due for delivery in the second quarter 2017.

Both drillships will be classed as ultra-deepwater, being capable of drilling in water depths of 12,000 feet (3,657 m), with a drilling depth of 40,000 feet (12,191 m).

Further, Transocean said that it is a mutual agreement between all parties including South Korean shipyard Daewoo.

Shell Drilling Contract

Anglo Dutch super major, Royal Dutch Shell, has already singed a 10 year agreement for both drillships.  Transocean have confirmed that the delay in the contract will not affect the duration or the day rate for either drillship contract.

Transocean have also said that the contracts on two further new build drillships Deepwater Thalassa and Deepwater Proteus will not be effected and will continue on schedule for delivery in Q1 and Q3 of next year respectively.

Transocean Chief Executive Officer, Jeremy Thigpen, said:“We are pleased that the strength of our relationships with both Shell and DSME has enabled us to reach this mutual agreement,”

“We are excited by the progress that we have jointly made with Shell on all four high-specification, ultra-deepwater drillships, including the Deepwater Thalassa, which was delivered this September, and the Deepwater Proteus, which is scheduled for delivery this December.”