Transocean retires four floaters. Takes $520M charge

Offshore driller Transocean will retire four offshore drilling rigs of which two three are of the ultra-deepwater type and one is a mid-water floater.

In an update on Thursday, Transocean said it would retire “in an environmentally responsible way”, the ultra-deepwater floaters Deepwater Discovery,  Deepwater Frontier, and Deepwater Millennium and the midwater floater Songa Trym. These rigs are classified as held for sale.

As a result of its decision to retire the four rigs, Transocean expects its second quarter 2018 results to include an estimated non-cash charge of approximately $520 million.

“As the Company continues to evaluate the long-term competitiveness of its fleet, additional rigs may be identified as candidates for retirement,” Transocean said.

As for the rigs in question, the Deepwater Discovery drillship, built in 2000, has been stacked since March 2015. Deepwater Frontier, built in 1999, has been stacked since November 2015, and Deepwater Millennium, also built in 1999 has been stacked since May 2016.

The Songa Trym semi-submersible drilling rig was acquired as part of the recent Transocean’s acquisition of rival Songa Offshore. The rig was built in 1976, and has been stacked since November 2016.

Offshore Energy Today Staff