Transocean Vessel Starts Work - Analyst Blog

World's largest offshore driller Transocean Inc. (RIG) notified that its newbuild ultra-deepwater drillship Discoverer India has started operations under a minimum five-year drilling contract with Reliance Industries. Reliance has the option – to be exercised by calendar year-end 2010 – to extend the contract period of the vessel to either seven or ten years.     

The Discoverer India, one of 25 ultra-deepwater floaters in the Transocean fleet, exhibits the most sophisticated offshore drilling technology. The drillship is equipped to work in water depths of up to 10,000 feet and is outfitted to construct wells up to 35,000 feet deep but can be upgraded to drill wells up to 40,000 feet in water depths of 12,000 feet, with additional equipment.  

Transocean said in a statement that the vessel features the company's patented dual-activity drilling technology, which has been designed to save time and money in deepwater well construction by way of parallel drilling operations. Additional attributes include an enhanced top drive system, a high-pressure mud system and a variable deckload in excess of 20,000 metric tons.    

Switzerland-based Transocean, Inc., with the very appropriate NYSE ticker of RIG, possesses one of the most modern and versatile rig fleets  in the world due to its emphasis on technically demanding segments of the offshore drilling business. As of September 30, 2010, the company owned, had partial ownership interests in, or operated 139 mobile offshore drilling rigs.

Transocean's drilling fleet consists of 45 high-specification deepwater floaters, 26 mid-water floaters, 10 high specification jackups, 55 standard jackups and other assets utilized to support offshore drilling activities worldwide. Additionally, the company has 3 ultra-deepwater floaters under construction.

Transocean, which competes with Diamond Offshore (DO) and Noble Corp (NE), currently retains a Zacks #3 Rank, translating into a short-term Hold rating. We are also maintaining our long-term 'Neutral' recommendation on the stock.

 
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