Newbuild Drillship to Have a 10-Year Drilling Contract With an Optional 10-Year Extension
HOUSTON, June 23, 2008 (PRIME NEWSWIRE) -- Transocean Inc. (NYSE:RIG) today announced that its subsidiaries have reached an agreement with subsidiaries of Petrobras and Mitsui to acquire a newbuild ultra-deepwater drillship under a capital lease contract. In conjunction with the capital lease contract, subsidiaries of Petrobras and Transocean have entered into a 10-year drilling contract covering worldwide operations with an option by Petrobras to extend the term of the drilling contract by up to an additional 10 years.
The capital lease contract has a 20-year term, after which Transocean will have the right and obligation to acquire the drillship for $1. Total capital costs to be incurred by Petrobras and Mitsui for the construction of the drillship are estimated to be $750 million, including $65 million of capitalized interest.
The 10-year drilling contract is expected to commence in the third quarter of 2009 following shipyard construction, sea trials, mobilization and customer acceptance. The drilling contract commencement is contingent on vendor performance and other factors. At least 12 months prior to the expiration of the initial 10-year term, Petrobras may elect to extend the term of the drilling contract by up to an additional 10 years at a mutually agreed operating dayrate which would then apply to the extension period.
Contract revenues over the initial 10-year contract term are estimated to be $1.68 billion, including monthly bonuses which could be as high as 12 percent of dayrate revenue each month. Estimated contract revenues are before taxes, which will be paid by Transocean and fully reimbursed by Petrobras. Additionally if the rig is operating in a jurisdiction where the company has a valid dual activity patent, an additional 5 percent royalty would be paid to Transocean. Estimated contract revenues represent the maximum amount of revenue that may be earned in the firm 10-year contract period, excluding revenues for reimbursed taxes, royalties, mobilization, demobilization and cost escalation.
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3 comments:
Dude they get the boat for 1$ not 1.000.000$.
I replaced the Houston Business Journal article with the company press release because of the inaccuracy.
A NEW EXCUSE FOR THE FAILURE OF THE "OIL WINDOW"
This website has documented a long list of oil wells producing from over 20,000 feet deep. The "oil window" corollary to "fossil" fuel theory states that oil breaks down into natural gas if the deposit is deeper than 15,000 feet deep.
Oil geologists know the "oil window" doesn't hold water -- that puts them in a tight spot -- what to do?
Come up with an "out" that excuses all the oil located deeper than the "oil window."
Not that this line of reasoning is even mentioned in any textbook or document outlining the "oil window" corollary to fossil theory.
But that little oversight won't stop desperate men.
Because this writer has read an oil geologist indicate "burial age and maturation" as a reason why oil is discovered deeper than the "oil window."
As in: The oil hasn't been "there" long enough to turn into natural gas.
Think about that for a bit...24 million years (the example one geologist gave) wasn't enough time for oil to breakdown into natural gas if the oil is too hot and it's deeper than the "oil window??
You have to be an arrogant jackass to try and sell that lame piece of crap.
No, the simple truth is that oil geologists got caught with their pants down.
The contract described in this post says, "people who know oil" are betting big money that the oil geologists, who came up with this "excuse," are full of crap.
Right now, based on the number of oil wells producing at over 20,000TVD, thats a pretty safe bet.
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