Transocean faces a hefty bill running to tens of millions of dollars to mobilise stacked offshore drilling rigs.
The company will incur reactivation costs of $25million to bring its mothballed ultra-deepwater semisubmersible GSF Development Driller back into service.
The fee will be incurred primarily in the last three months of the year, the company said.
The drilling rig has lain idle since been stacked in May 2016.
It will be brought out of cold stacked storage for a three well contract offshore Australia.
The floater is expected to commence operations in the first quarter of 2018.
The reactivation of the semi Transocean Barents will also cost the company approximately $40million. The costs will hit Transocean’s books primarily in Q2, with Q3 costs to be amortized/depreciated.
The rig is on contract for Suncor Energy offshore Canada, due to start next month, on a day rate of $260,000.
The idled drill ship Discoverer India also is expected to go through a “strategic upgrade” estimated to cost $27million.
Transocean currently has 19 stacked rigs.
As of July 25, 2017, the company’s contract backlog is $10.2 billion
In addition, Deepwater Asgard was awarded a two-well contract in the US Gulf of Mexico. The ultra-deepwater drillship was previously idle.
Ultra-deepwater semisubmersible Development Driller III also netted a two-well contract.
Woodside offshore Myanmar made use of a two well option for the Dhirubhai Deepwater KG2
The Paul B. Loyd, Jr. and the Transocean Arctic also had options exercised for North Sea work.
The midwater floaters Transocean Prospect and Transocean Searcher were classified as held for sale.
The company said the rigs will be recycled in an environmentally responsible manner.
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