TRANSOCEAN ABANDONS THE CONSTRUCTION OF TWO SAMSUNG DRILLSHIPS

September 24, 2019

Transocean announced that two of its indirect, wholly-owned subsidiaries will relinquish their respective interests in two drillships under construction – the Ocean Rig Santorini and the Ocean Rig Crete – to Samsung Heavy Industries Co., Ltd. (SHI). Upon relinquishment of the Drillships, Transocean’s indirect, wholly-owned subsidiaries will not make further payments to SHI under the construction contracts. The total estimated future costs associated with the delivery and placing the Drillships into service would have been approximately $1.1 billion, which includes future payments to SHI under the construction contracts and costs related to spares, materials and supplies, and to the commissioning and mobilization of the rigs. The construction contracts are not guaranteed by Transocean Ltd. or any of its affiliates.
Today, Transocean owns or has partial ownership interests in, and operates a fleet of 47 mobile offshore drilling units consisting of 31 ultra-deepwater floaters, 13 harsh environment floaters, and three midwater floaters. In addition, Transocean previously had four ultra-deepwater drillships under construction which included the Ocean Rig Crete and Ocean Rig Santorini. According to the company, the Deepwater Titan is still scheduled for delivery in Q4 2021.
(Source: Transocean – Image: Ocean Rig Santorini under construction at Samsung shipyard in South Korea)