Transocean, Shell and DSME to delay two drillship deliveries

OCTOBER 26, 2015 — In yet another indication of the slowdown in global offshore drilling activity, Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported a mutual agreement with customer Shell EP Wells Equipment Wells Services B.V. (Shell) and the shipyard, Daewoo Shipbuilding & Marine Engineering Co. (DSME) to delay the operating and delivery contracts of two newbuild ultra-deepwater drillships - the Deepwater Pontus and the Deepwater Poseidon - by 12 months each.

Transocean says that the delay has no impact on the duration or dayrate of the original 10-year operating contracts for each of the two newbuild ultra-deepwater drillships.

Parties will be compensated for the postponement. The specific terms have not been disclosed.

The delivery and operating agreements for Shell's two other contracted Transocean newbuild, ultra-deepwater drillships, the Deepwater Thalassa and Deepwater Proteus, are not impacted by this agreement.

"We are pleased that the strength of our relationships with both Shell and DSME has enabled us to reach this mutual agreement," said Transocean President and Chief Executive Officer Jeremy Thigpen. "We are excited by the progress that we have jointly made with Shell on all four high-specification, ultra-deepwater drillships, including the Deepwater Thalassa, which was delivered this September, and the Deepwater Proteus, which is scheduled for delivery this December."

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