Transocean rig gets record $650,000 dayrate
HOUSTON, July 8 (Reuters) - Transocean Inc (RIG), the world's largest offshore drilling contractor, said on Tuesday one of its deepwater drill ships has been awarded a five-year contract worth a record $650,000 per day.
Shares of Transocean, whose operations are based in Houston, climbed as much as 2.5 percent on the news before retreating to trade slightly lower along with other energy stocks.
Record crude oil prices have stirred booming demand for offshore drilling rigs, which are currently in tight supply worldwide.
The contract for the Deepwater Pathfinder is set to start in March 2010. The agreement with a subsidiary of Eni (ENI) is for drilling primarily in the U.S. Gulf of Mexico.
"The new Eni contract represents a new record day rate for the industry and a meaningfully positive datapoint for Transocean and deepwater peers ... ," Bill Herbert, oilfield services analyst with Simmons & Co Int'l, wrote to clients.