Results

Transocean Ltd.

02/14/2020 | Press release | Distributed by Public on 02/14/2020 16:39

SEC Filing - 8-K

RIG_FSR_EX99_1

Updated: February 14, 2020

Revisions Noted in Bold

Dynamically positioned 

Dayrate on

Dayrate on

Yr. (1)

Water

Drilling

Estimated

Estimated

Current

Previous

Footnote

Floater

Dynamically

Entered

Depth

Depth

Contract

Expiration

Contract (3)

Contract (3)

Rig Type/Name

References

Type

Positioned

Service

(Feet)

(Feet)

Location

Customer

Start Date (2)

Date (2)

(Dollars)

(Dollars)

Additional Comments for Q1 2020 - Q4 2020

Rigs Under Construction (2)

Deepwater Atlas

(9)

ship

TBA

12,000

40,000

TBA

Deepwater Titan

(6), (16)

ship

TBA

12,000

40,000

USGOM

Chevron

Q4 2021

Q4 2026

455,000

N/A

Ultra-Deepwater (28)

Deepwater Poseidon

(6)

ship

2018

12,000

40,000

USGOM

Shell

Sep-18

Feb-28

476,000

N/A

Deepwater Pontus

(6)

ship

2017

12,000

40,000

USGOM

Shell

Oct-17

Oct-27

476,000

N/A

Deepwater Conqueror

(6), (8)

ship

2016

12,000

40,000

USGOM

Chevron

Dec-16

Dec-21

582,000

N/A

Deepwater Proteus

(6)

ship

2016

12,000

40,000

USGOM

Shell

Aug-16

May-26

474,000

N/A

Deepwater Thalassa

(6)

ship

2016

12,000

40,000

USGOM

Shell

Jul-16

Feb-26

474,000

N/A

Ocean Rig Apollo

ship

2015

12,000

40,000

Stacked May 2016

Deepwater Asgard

ship

2014

12,000

40,000

USGOM

Beacon Offshore

Jan-20

Jul-20

220,000

185,000

USGOM

Beacon Offshore

Jul-20

Oct-20

240,000

N/A

Deepwater Invictus

(6)

ship

2014

12,000

40,000

USGOM

BHP Billiton

Oct-19

Apr-20

Not Disclosed

Not Disclosed

(6)

Trinidad

BHP Billiton

Apr-20

Jul-20

155,000

N/A

(6)

USGOM

BHP Billiton

Jul-20

Apr-21

155,000

N/A

Deepwater Athena

ship

2014

12,000

40,000

Stacked March 2017

Deepwater Skyros

ship

2013

12,000

40,000

Angola

Total

Dec-18

Sep-21

573,000

N/A

Deepwater Mylos

ship

2013

12,000

40,000

Stacked September 2016

Deepwater Corcovado

(7), (8)

ship

2011

10,000

35,000

Brazil

Petrobras

Dec-19

Jul-21

191,000

N/A

30 days out of service in 2020

Deepwater Mykonos

(7), (8)

ship

2011

10,000

35,000

Brazil

Petrobras

Nov-19

May-21

211,000

N/A

Deepwater Olympia

ship

2011

10,000

35,000

Stacked April 2016

Deepwater Orion

ship

2011

10,000

35,000

Idle October 2019

Deepwater Champion

ship

2011

12,000

40,000

Stacked Feb. 2016

Discoverer Inspiration

(6), (8)

ship

2010

12,000

40,000

USGOM

Chevron

Mar-15

Mar-20

565,000

N/A

21 days out of service in April 2020

USGOM

Talos

Apr-20

Jul-20

210,000

565,000

Discoverer India

ship

2010

12,000

40,000

Egypt

Burullus

Sep-19

Apr-20

135,000

N/A

Egypt

Burullus

Apr-20

Aug-20

170,000

N/A

Dhirubhai Deepwater KG2

(13)

ship

2010

12,000

35,000

Australia

Chevron

Oct-19

Jun-20

260,000

N/A

Myanmar

Woodside

Oct-20

Apr-21

250,000

260,000

Discoverer Luanda

ship

2010

7,500

40,000

Stacked February 2018

Discoverer Americas

ship

2009

12,000

40,000

Stacked April 2016

Discoverer Clear Leader

ship

2009

12,000

40,000

Stacked June 2019

Petrobras 10000

(4), (6), (7)

ship

2009

12,000

37,500

Brazil

Petrobras

Mar-19

Feb-20

294,000

N/A

(4), (6), (7)

Brazil

Petrobras

Mar-20

Feb-21

307,000

N/A

(4), (6), (7)

Brazil

Petrobras

Mar-21

Sep-21

316,000

N/A

Dhirubhai Deepwater KG1

ship

2009

12,000

35,000

India

Reliance

Nov-19

Nov-20

127,000

124,000

Development Driller III

semi

2009

7,500

37,500

Equatorial Guinea

ExxonMobil

Feb-19

Mar-20

192,000

N/A

Trinidad

Not Disclosed

Apr-20

Apr-21

250,000

192,000

Paid mobilization in March

GSF Development Driller II

semi

2005

7,500

37,500

Stacked Jan. 2016

GSF Development Driller I

(13)

semi

2005

7,500

37,500

Australia

Chevron

May-19

May-20

209,000

Not Disclosed

(13)

Australia

Chevron

May-20

Oct-20

217,000

N/A

Deepwater Nautilus

semi

2000

8,000

30,000

Brunei

Shell

Jan-20

Feb-20

175,000

N/A

Malaysia

Petronas (Shell Farmout)

Feb-20

Jul-20

140,000

175,000

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Estimated Average Contract Dayrates (5)

$323,000

$307,000

$322,000

$354,000

Harsh Environment (14)

Transocean Norge

(7), (8), (12)

semi

2019

10,000

40,000

Norway

Equinor

Nov-19

May-20

281,000

N/A

(7), (8), (12)

Norway

Equinor

Jun-20

Aug-20

291,000

281,000

Transocean Enabler

(6), (7), (8)

semi

2016

1,640

28,000

Norway

Equinor

Jul-19

Jul-20

438,000

N/A

(6), (7), (8)

Norway

Equinor

Jul-20

Jul-21

434,000

N/A

(6), (7), (8)

Norway

Equinor

Jul-21

Jul-22

429,000

N/A

(6), (7), (8)

Norway

Equinor

Jul-22

Jul-23

425,000

N/A

(6), (7), (8)

Norway

Equinor

Jul-23

Mar-24

415,000

N/A

Transocean Encourage

(6), (7), (8)

semi

2016

1,640

28,000

Norway

Equinor

Mar-19

Mar-20

434,000

N/A

(6), (7), (8)

Norway

Equinor

Mar-20

Mar-21

430,000

N/A

(6), (7), (8)

Norway

Equinor

Mar-21

Mar-22

425,000

N/A

(6), (7), (8)

Norway

Equinor

Mar-22

Mar-23

421,000

N/A

(6), (7), (8)

Norway

Equinor

Mar-23

Nov-23

412,000

N/A

Transocean Endurance

(6), (8)

semi

2015

1,640

28,000

Norway

Equinor

Dec-19

Dec-20

487,000

N/A

(6), (8)

Norway

Equinor

Dec-20

Dec-21

483,000

N/A

(6), (8)

Norway

Equinor

Dec-21

Dec-22

478,000

N/A

(6), (8)

Norway

Equinor

Dec-22

Jun-23

467,000

N/A

Transocean Equinox

(6), (8)

semi

2015

1,640

28,000

Norway

Equinor

Nov-19

Nov-20

487,000

N/A

(6), (8)

Norway

Equinor

Nov-20

Nov-21

482,000

N/A

(6), (8)

Norway

Equinor

Nov-21

Nov-22

478,000

N/A

(6), (8)

Norway

Equinor

Nov-22

Dec-22

468,000

N/A

Transocean Spitsbergen

(7), (8)

semi

2010

10,000

30,000

Norway

Equinor

Oct-19

Jun-22

Not Disclosed

230,000

Transocean Barents

(14)

semi

2009

10,000

30,000

Canada

Equinor

Footnote 14

Footnote 14

Not Disclosed

N/A

Leiv Eiriksson

semi

2001

7,500

25,000

Norway

ConocoPhillips

Dec-19

Mar-20

Not Disclosed

N/A

Norway

Spirit Energy

Jun-20

Jul-20

225,000

Not Disclosed

Norway

ConocoPhillips

Jul-20

Nov-20

235,000

225,000

Paul B. Loyd, Jr.

(3)

semi

1990

2,000

25,000

UKNS

Hurricane Energy PLC

Feb-20

Mar-20

160,000

Not Disclosed

UKNS

Hurricane Energy PLC

Apr-20

Sep-20

205,000

N/A

UKNS

Hurricane Energy PLC

Oct-20

Oct-20

160,000

N/A

Transocean Leader

semi

1987/1997

4,500

25,000

UKNS

Premier Oil

Mar-20

Jun-20

Not Disclosed

Not Disclosed

Transocean Arctic

(7)

semi

1986

1,650

25,000

Norway

DEA Norge

Jul-19

Jul-20

Not Disclosed

Not Disclosed

Henry Goodrich

semi

1985/2007

5,000

30,000

Idle February 2020

Polar Pioneer

semi

1985/2014

1,500

25,000

Stacked Dec. 2015

Songa Dee

semi

1984/2014

1,500

30,000

Stacked Sep. 2016

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Estimated Average Contract Dayrates (5)

$334,000

$338,000

$346,000

$374,000

Midwater Floaters (3)

Sedco 714

semi

1983/1997

1,600

25,000

Stacked Nov. 2015

Transocean 712

(7)

semi

1983

1,600

25,000

UKNS

ConocoPhillips

Mar-19

Jan-21

Not Disclosed

Not Disclosed

Sedco 711

semi

1982

1,800

25,000

Stacked Jan. 2016

Q1 2020

Q2 2020

Q3 2020

Q4 2020

Estimated Average Contract Dayrates (5)

$130,000

$130,000

$130,000

$130,000

Fixed-Price Options - See Footnote 10

Ultra-Deepwater

GSF Development Driller I

semi

2005

7,500

37,500

Australia

Chevron

Nov-20

Dec-20

Not Disclosed

N/A

Australia

Chevron

Dec-20

Jan-21

Not Disclosed

N/A

Australia

Chevron

Jan-21

Feb-21

Not Disclosed

N/A

Australia

Chevron

Mar-21

Apr-21

Not Disclosed

N/A

Deepwater Invictus

(6)

ship

2014

12,000

40,000

USGOM

BHP Billiton

Apr-21

Apr-22

Not Disclosed

N/A

(6)

USGOM

BHP Billiton

Apr-22

Apr-23

Not Disclosed

N/A

Ocean Rig Skyros

(8), (15)

ship

2013

12,000

40,000

Angola

Total

Oct-21

Jan-22

200,000

N/A

(8), (15)

Angola

Total

Jan-22

May-22

200,000

N/A

(8), (15)

Angola

Total

May-22

Sep-22

200,000

N/A

Ocean Rig Corcovado

(7), (8)

ship

2011

10,000

35,000

Brazil

Petrobras

Aug-21

Jun-23

Not Disclosed

N/A

Ocean Rig Mykonos

(7), (8)

ship

2011

10,000

35,000

Brazil

Petrobras

May-21

Aug-23

Not Disclosed

N/A

Discoverer India

ship

2010

12,000

40,000

Egypt

Burullus

Aug-20

Dec-20

Not Disclosed

N/A

Egypt

Burullus

Dec-20

Apr-21

Not Disclosed

N/A

Egypt

Burullus

Apr-21

Aug-21

Not Disclosed

N/A

Egypt

Burullus

Aug-21

Dec-21

Not Disclosed

N/A

Egypt

Burullus

Dec-21

Apr-22

Not Disclosed

N/A

Dhirubhai Deepwater KG1

ship

2009

12,000

35,000

India

Reliance

Nov-20

May-21

Not Disclosed

N/A

Deepwater Asgard

ship

2014

12,000

40,000

USGOM

Beacon Offshore

Oct-20

Nov-20

Not Disclosed

N/A

USGOM

Beacon Offshore

Nov-20

Jan-21

Not Disclosed

N/A

USGOM

Beacon Offshore

Jan-21

Feb-21

Not Disclosed

N/A

Discoverer Inspiration

USGOM

Talos

Jul-20

Sep-20

Not Disclosed

N/A

USGOM

Talos

Sep-20

Oct-20

Not Disclosed

N/A

USGOM

Talos

Oct-20

Nov-20

Not Disclosed

N/A

Dhirubhai Deepwater KG2

ship

2010

12,000

35,000

Myanmar

Woodside

Apr-21

Aug-21

250,000

N/A

Harsh Environment

Transocean Enabler

(7), (11), (8)

semi

2016

1,640

28,000

Norway

Equinor

Mar-24

Mar-27

415,000

N/A

(7), (11), (8)

Norway

Equinor

Mar-27

Mar-30

415,000

N/A

(7), (8)

Norway

Equinor

Mar-30

Mar-33

415,000

N/A

(7), (8)

Norway

Equinor

Mar-33

Mar-36

415,000

N/A

Transocean Encourage

(7), (11), (8)

semi

2016

1,640

28,000

Norway

Equinor

Nov-23

Nov-26

412,000

N/A

(7), (11), (8)

Norway

Equinor

Nov-26

Nov-29

412,000

N/A

(7), (8)

Norway

Equinor

Nov-29

Nov-32

412,000

N/A

(7), (8)

Norway

Equinor

Nov-32

Nov-35

412,000

N/A

Transocean Endurance

(6), (11), (8)

semi

2015

1,640

28,000

Norway

Equinor

Jun-23

Jun-26

483,000

N/A

(6), (11), (8)

Norway

Equinor

Jun-26

Jun-29

483,000

N/A

(6), (8)

Norway

Equinor

Jun-29

Jun-32

483,000

N/A

(6), (8)

Norway

Equinor

Jun-32

Jun-35

483,000

N/A

Transocean Equinox

(6), (11), (8)

semi

2015

1,640

28,000

Norway

Equinor

Dec-22

Dec-25

483,000

N/A

(6), (11), (8)

Norway

Equinor

Dec-25

Dec-28

483,000

N/A

(6), (8)

Norway

Equinor

Dec-28

Dec-31

483,000

N/A

(6), (8)

Norway

Equinor

Dec-31

Dec-34

483,000

N/A

Transocean Spitsbergen

(7), (8)

semi

2010

10,000

30,000

Norway

Equinor

Jun-22

Jul-22

Not Disclosed

N/A

(7), (8)

Norway

Equinor

Jul-22

Aug-22

Not Disclosed

N/A

Transocean Barents

(8), (14)

semi

2009

10,000

30,000

Canada

Equinor

Footnote 14

Footnote 14

Not Disclosed

N/A

Transocean Norge

(7), (8), (12)

semi

2019

10,000

40,000

Norway

Equinor

Aug-20

Sep-20

Not Disclosed

N/A

(7), (8), (12)

Norway

Equinor

Sep-20

Oct-20

Not Disclosed

N/A

Revisions Noted in Bold

Footnotes

(1)

Dates shown are the original service date and the date of the most recent upgrade, if any.

(2)

Estimated Contract Start and Estimated Expiration Dates are generally calculated as follows: (1) for events estimated to occur between the 1st and 15th of a month, the previous month is reported (i.e. a contract which is estimated to commence on March 4, 2018 will be reported as commencing in February 2018) and (2) for events estimated to occur between the 16th and the end of a month, the actual month is reported (i.e. a contract which is estimated to commence on March 24, 2018 will be reported as commencing in March 2018). Expiration dates represent the company's current estimate of the earliest date the contract for each rig is likely to expire. Some rigs have two or more contracts in continuation, so the last line shows the estimated earliest availability. Many contracts permit the customer to extend the contract.

(3)

Represents the full operating dayrate, although the average dayrate over the term of the contract will be lower and could be substantially lower. Does not reflect incentive programs which are typically based on the rig's operating performance against a performance curve. Please refer to the 'Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations' section of the Disclaimers & Definitions for a description of dayrates. This column may not reflect the rate currently being received under the contract as a result of an applicable standby rate or other rate, which typically is less than the contract dayrate.

(4)

In September 2018, the contract was extended by 2 years through October 2021 and includes a blend and extend modification to the previous contract dayrate.

(5)

Estimated Average Contract Dayrate is defined as the average contracted full operating dayrate to be earned per revenue earning day. See note (3) for definition of full operating dayrate.

(6)

If the dayrate is disclosed, reflects the current contracted dayrate which could reflect prior cost escalations, or de-escalations, and could change in the future due to further cost escalations, or de-escalations.

(7)

If the dayrate is disclosed, reflects the current contracted dayrate which, along with costs, includes a foreign currency component. Changes in the value of the U.S. Dollar relative to certain foreign currencies will result in an adjustment to the dayrate according to the terms of the contract. The dayrate adjustment generally offsets the foreign currency exchange-related change in costs.

(8)

If the dayrate is disclosed, the contract provides for a bonus incentive opportunity not reflected in the current contract dayrate.

(9)

Deepwater Atlas on order from Sembcorp Marine's subsidiary, Jurong Shipyard, has a contractual delivery date of September 27, 2020.

(10)

Fixed price options may be exercised at the customer's discretion. During periods when dayrates on new contracts are increasing relative to existing contracts, the likelihood of customers' exercising fixed price options increases. During periods when dayrates on new contracts are decreasing relative to existing contracts, the likelihood of customers' exercising fixed price options declines.

(11)

If exercised, a lump sum payment of $12.5 million shall be payable to the customer upon commencement of the option period.

(12)

We hold a 33.0% ownership interest in the unconsolidated company owning the rig. Our customer has entered into the drilling contract with the operating company, a wholly owned subsidiary. Our contract backlog includes and we will recognize 100% of the contract drilling revenues associated with the drilling contract.

(13)

Customer agreed to transfer dates from the GSF Development Driller I to the Dhirubhai Deepwater KG2.

(14)

The start date for this contract is variable at the customers choosing between January 1, 2020 and March 1, 2020. If the customer has not initiated drilling services by March 2, the rig will be on a standby rate paid by the customer at an undisclosed amount. The firm term for this contract is approximately 120 days. We estimated the contract value to be approximately $54 million dollars, including integrated services, mob and de-mob. Additionally, the contract includes two remaining one-well options priced at an undisclosed rate.

(15)

The contract includes three priced options of 2 wells or a minimal duration of 120 days. Since the dayrate of the priced option is substantially lower than the dayrate of the firm contract and our expectation for the future market dayrate, we will defer recognition of a portion of the revenues billed during the firm contract period and recognize it during the option periods. The average dayrate during the firm and priced options period is $467,000.

(16)

The contract is expected to start in the quarter indicated. Factors that could influence the contract start date include shipyard delivery, customer acceptance, and mobilization to operating location, among others.

The information contained in this Fleet Status Report (the 'Information') is as of the date of the report only and is subject to change without notice to the recipient. Transocean Ltd. assumes no duty to update any portion of the Information.

DISCLAIMER. NEITHER TRANSOCEAN LTD. NOR ITS AFFILIATES MAKE ANY EXPRESS OR IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE) REGARDING THE INFORMATION CONTAINED IN THIS REPORT, WHICH INFORMATION IS PROVIDED 'AS IS.' Neither Transocean Ltd. nor its affiliates will be liable to any recipient or anyone else for any inaccuracy, error or omission, regardless of cause, in the information set forth in this report or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom.

No Unauthorized Publication or Use. All information provided by Transocean in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Transocean.

Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations. The duration and timing (including both starting and ending dates) of the customer contracts are estimates only, and customer contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Transocean. Also, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.) including some beyond the control of Transocean. Our customer contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in our filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC's website at www.sec.gov. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, shipyards or recharges.

Out of Service. The time associated with committed shipyards, upgrades, surveys, repairs, regulatory inspections, contract preparation or other committed activity on the rig and is not expected to earn an operating dayrate, Contract preparation refers to periods during which the rig is undergoing modifications or upgrades as a result of contract requirements.

The references included in this Fleet Status Report may not be firm and could change significantly based on a variety of factors. Any significant changes to our estimates of out of service time will be reflected in subsequent Fleet Status Reports, as applicable.

In some instances such as certain mobilizations, upgrades and shipyards, we are paid compensation by our customers that is generally recognized over the life of the primary contract term of the drilling contract.

Forward-Looking Statement. The statements made in the Fleet Update that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements made in the Fleet Update include, but are not limited to, statements involving the estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations and planned shipyard projects and other out of service time. Such statements are subject to numerous risks, uncertainties and assumptions, including but not limited to, uncertainties relating to the level of activity in offshore oil and gas exploration and development, exploration success by producers, oil and gas prices, competition and market conditions in the contract drilling industry, shipyard delays, actions and approvals of third parties, possible cancellation or suspension of drilling contracts as a result of mechanical difficulties or performance, Transocean's ability to enter into and the terms of future contracts, the availability of qualified personnel, labor relations and the outcome of negotiations with unions representing workers, operating hazards, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, terrorism, political and other uncertainties inherent in non-U.S. operations (including the risk of war, civil disturbance, seizure or damage of equipment and exchange and currency fluctuations), the impact of governmental laws and regulations, the adequacy of sources of liquidity, the effect of litigation and contingencies and other factors described above and discussed in Transocean's most recently filed Form 10-K, in Transocean's Forms 10-Q for subsequent periods and in Transocean's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward looking statements, except as required by law.

Fleet Classifications. Transocean uses classifications for its drillships, semisubmersibles, and jackup rigs.The classifications reflect the company's strategic focus on the ownership and operations of premium, high-specification units and are approximately as follows: 'Ultra-Deepwater' are the latest generation of drillships and semisubmersible rigs and are capable of drilling in water depths equal to or greater than 7,500 feet; 'Deepwater' rigs are drillships and semisubmersible rigs capable of drilling in water depths equal to or greater than 4,500 feet and less than 7,500 feet; 'Harsh Environment' are premium rigs equipped for year-round operations in harsh environments; 'Midwater Floaters' are semisubmersible rigs capable of drilling in water depths of greater than 300 feet and up to 4,499 feet.

Stacking. An 'Idle' rig is primarily between contracts, readily available for operations, and operating costs are typically at or near normal levels. A 'Stacked' rig, on the other hand, is primarily manned by a reduced crew or unmanned and typically has reduced operating costs and is (i) preparing for an extended period of inactivity, (ii) expected to continue to be inactive for an extended period, or (iii) completing a period of extended inactivity. However, stacked rigs will continue to incur operating costs at or above normal operating costs for approximately 30 days following initiation of stacking.