Transocean (RIG) has secured a contract extension with Reliance Industries in India for its Dhirubhai Deepwater KG1 drillship. The program consists of a four-well option exercise and is estimated to last 270 days, starting immediately after the rig’s current firm term with Reliance. The contract is valued at approximately $111 million in backlog, excluding additional services.
The deal is a significant boost to Transocean’s backlog and revenue visibility, with an implied day rate of approximately $411,000 for the 270-day program. The continuous deployment also minimizes idle time and operational costs, optimizing the rig’s utilization.
This contract extension reflects the robust demand for ultra-deepwater drilling capabilities in the Indian Ocean region. The deal demonstrates Reliance’s commitment to offshore exploration and development activities, despite global market fluctuations. The Dhirubhai Deepwater KG1’s continued engagement in India’s waters aligns with the country’s efforts to reduce energy import dependency through increased domestic production.