Offshore drilling service provider Transocean has received a US$252M contract from Beacon Offshore Energy Exploration & Production (BOE) to secure the services of its ultra-deepwater drillship, newbuild Deepwater Atlas
The award results from the final investment decision taken by BOE and the stakeholders in the Shenandoah project in the Gulf of Mexico.
The contract includes a mobilisation fee of US$30M for the vessel and provides for a significant performance bonus opportunity based upon agreed operating metrics.
Calling it a “significant milestone” for Transocean, BOE and the Shenandoah partners, Transocean president and chief executive Jeremy Thigpen said, “We are extremely pleased to have secured the maiden contract for Deepwater Atlas, the first of our two eighth-generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000-psi ultra-deepwater well operations.”
“We are very encouraged by the growing list, across multiple customers, of 20,000-psi opportunities in the Gulf of Mexico. And, with the only two assets in the world specifically designed to maximise efficiencies for 20,000-psi well completions, we are the undisputed market leader in this space, and thus excited about the future prospects for these state-of-the-art assets.”
The Shenandoah project comprises two phases. Once delivered from the shipyard, Deepwater Atlas is expected to commence operations in Q3 2022, initially using dual blowout preventers (BOP) rated to 15,000 psi.
Phase one of the initial drilling programme is expected to last approximately 255 days and yield US$80M of contract drilling revenue. Upon completion of the initial drilling programme, a 20,000-psi BOP will be installed on the rig, making it Transocean’s second asset with a 20,000-psi-rated well control system.
The BOP installation and commissioning is expected to last 45 to 60 days, contributing US$17M in revenue.
In phase two, Deepwater Atlas will commence with the well completion programme. This phase is expected to last approximately 275 days and contribute US$125M in revenue.
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