Offshore drilling contractor Transocean has landed a $252m firm deal with Beacon Offshore Energy for its newbuild ultra-deepwater drillship Deepwater Atlas for work on the Shenandoah project in the US Gulf of Mexico. The deal includes a mobilisation fee of $30m and provides for a performance bonus opportunity.
The Shenandoah program comprises two phases. Once delivered from the shipyard, the drillship is expected to commence operations in the third quarter of 2022. The initial drilling program is expected to last 255 days and result in around $80m of revenue.
Upon completion of the initial drilling program, a 20,000 psi blowout preventer (BOP) will be installed on the rig, making it Transocean’s second asset with a 20,000 psi-rated well control system. The BOP installation and commissioning is expected to last 45 to 60 days, contributing to approximately $17m of revenue. The second phase is expected to last 275 days and generate revenue of $125m.
“This is a significant milestone for Transocean, BOE and the Shenandoah partners, as we jointly venture into this new frontier of ultra-deepwater drilling,” said Transocean president and CEO, Jeremy Thigpen.
The Deepwater Atlas is the first of the company’s two 8th generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000 psi well operations.