Transocean, Ensco International cut deals involving seven offshore rigs

Ray Tyson

Petroleum News Houston correspondent

Big offshore contract driller Transocean has found an overseas home for three of its deepwater rigs, while Ensco International has agreed to exchange three of its offshore rigs and $55 million in cash for the construction of a new premium jack-up, the companies said Feb. 17.

Houston-based Transocean said Norway’s state-owned Statoil has selected the semi-submersible Transocean Leader on a 15-month contract for duty on the Norwegian continental shelf. The contract, worth about $85.1 million, is to begin in early May, following modifications to the rig. The Leader is currently idle in the U.K. North Sea.

France’s Total has chosen Transocean’s semi-submersible Jack Bates on 100-day contract for drilling services in the U.K. North Sea. The contract will commence by April 1 and could generate revenues of $12.5 million, Transocean said. The rig recently completed a drilling program in the region and is currently idle.

ExxonMobil has contracted Transocean drillship Deepwater Discovery for a two-well, estimated 90-day program offshore Nigeria. The contract began Feb. 6 and could generate $15.7 million in revenues, Transocean said.

Meanwhile, Dallas-based Ensco said it signed an agreement with Keppel Fels Ltd. of Singapore to exchange three of its older rigs for a new one to be built. The rigs to be exchanged are the Ensco 55, a 300-foot Freide & Goldman 780 Mod II jackup built in 1981, and two Gulf of Mexico platform rigs, Ensco 23 and 24, built in 1980.

The new premium jackup rig, to be named Ensco 107, will be an enhanced Kfels Mod V (B) design modified to Ensco specifications, Ensco said. The rig is a sister to Ensco 106, a joint venture with Keppel, which is currently under construction in Singapore. Ensco 106 is expected to be delivered by year-end 2004, and delivery of Ensco 107 is expected in late 2005.

“The agreement to exchange three rigs plus cash for construction of (a new rig) is another step in our continuing fleet renewal program,” said Carl Thorne, Ensco’s chief executive officer.