HOUSTON, March 27, 2008 (PRIME NEWSWIRE) -- Transocean Inc. (NYSE:RIG) today announced that the ultra-deepwater semisubmersible Deepwater Nautilus has been awarded a minimum three-year contract extension commencing in December 2008 by a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (NYSE:RDS.B).
Under the terms of the amendment extending the term of the drilling contract, Shell has the right to elect, by June 30, 2008, to extend the contract by an additional year, to a total of four years. Estimated contract revenues that could be generated over the three-year or four-year (if elected) extension periods are approximately $586 million or $759 million, respectively. Estimated contract revenues represent the maximum amount of revenues that may be earned in the applicable contract period, excluding revenues for mobilization, demobilization and cost escalations.
The Deepwater Nautilus is one of 39 High-Specification Floaters in the Transocean fleet, 18 of which are Ultra-Deepwater Floaters. The rig, which entered service in 2000, is capable of operating in water depths of up to 8,000 feet, or greater if a pre-set mooring system is used.
Forward-Looking Statements
Statements regarding the contract extension, its commencement date and its estimated revenues, as well as any other statements that are not historical facts, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to operating hazards and delays, actions by customers and other third parties, the future price of oil and gas, the actual revenues earned and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission (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. The company disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise, except as required by law.
Transocean Inc. is the world's largest offshore drilling contractor and the leading provider of drilling management services worldwide. With a fleet of 138 mobile offshore drilling units plus eight ultra-deepwater units under construction, the company's fleet is considered one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. The company owns or operates a contract drilling fleet of 39 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment semisubmersibles and drillships), 29 Midwater Floaters, 10 High-Specification Jackups, 56 Standard Jackups and other assets utilized in the support of offshore drilling activities worldwide. With a current equity market capitalization of approximately $42 billion, Transocean Inc.'s ordinary shares are traded on the New York Stock Exchange under the symbol "RIG."
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