deepwater expedition new contract-to whom, page-5

Hi Cara,

What I think doesn't really matter.

It would seem BHP cancelled their contract with Transocean for underperformance and safety concerns.

Transocean seem to report that the rig was pulled for maintenance.

The new contract on the refitted rig has only increased by 9k per day- from 641k to 650k, seems a favourable rate with a refitted rig.

The new contract is as follows,

"Transocean, one of the largest drilling contractors in the world recently announced that its drillship, Deepwater Expedition, was awarded a two-year contract with an undisclosed customer commencing December 2012.

The initial dayrate of the contract is $650,000 ($475 million contract backlog). Additionally, the contract includes three priced eight-month option periods."

Note the $475 million contract backlog, Thats about a two year contract, so it would seem the new contract may be with a previous client and the three priced eight-month option periods price is not disclosed and totals another two years.

It would seem BHP/ Petrabos had a contract from 2010 to 2013 and the rig was pulled in late 2011 and the contract cancelled.

How often do you see TBA regarding location and client on the Transocean Fleet status reports?

It would seem the new lessee may have some details that need to be finalised and may be negotiating perhaps without disclosing a position regarding a rig.

Which Company, and the location of where the Transocean Expedition is to go to will be revealed in due course.

As the saying goes time will tell.

Singapore is quite handy to the South China sea and Malaysia, so it could be anywhere.

It would seem BHP have now changed the status on Jujur 1 (Deepwater Expedition's last drill off Malaysia) from Temporary suspended to Plugged and abandoned.

All in all it will be interesting to see how long it takes before the undisclosed customer is revealed.(Perhaps not too long after negoiations are complete.)

There is 7 months between now and December 2012, I wonder if the Deepwater Expedition will be ready to commence drilling again before December,(the rig has been in dock since November 2011 so is getting on to 6 months in dock).

Bear in mind the new contract has Three 8 month Options as well.

It is good to see that BHP are concerned for the short time frame they would have for a post drill analysis before deciding on a possible second drill, if the old time frame was used, and are applying for an extention- makes for good informed decisions and hopefully positve results!

IMO DYOR