Yahoo Finance Transocean (RIG) Secures 2 Drilling Contracts From Equinor
Transocean Ltd. RIG, the world’s largest offshore drilling contractor and leading provider of drilling management services, has been awarded two separate drilling contracts, worth $382 million, by the energy company Equinor EQNR. Per the agreements, Transocean will provide drilling services at designated offshore locations to support Equinor's exploration and production efforts in the oil and gas industry. The deals between the two companies are expected to benefit both of them, as EQNR will avail high-quality drilling services, while RIG will receive substantial revenues.
Transocean Enabler Contract Details
The first of these contracts is for the Transocean Enabler, which has been hired to drill 19 firm wells and up to eight optional wells on the Johan Castberg field in the Barents Sea. The contract will be valid for 570 days and is scheduled to begin in April 2024. It is estimated to generate around $217 million in the backlog for Transocean.
The Transocean Enabler is a state-of-the-art harsh environment semisubmersible, ideal for drilling in challenging offshore environments. Equipped with cutting-edge drilling technology, this rig is designed to deliver exceptional performance, efficiency and safety, even in the most demanding conditions.
Transocean Encourage Contract Details
The second drilling contract is for the Transocean Encourage, which is a highly capable harsh environment semisubmersible. The rig has been contracted to drill nine firm wells in the Norwegian North Sea for Equinor. The 460-day contract is scheduled to begin in December 2023, and is expected to generate around $165 million in the backlog.
With advanced drilling technology, superior efficiency and exceptional safety features, this rig is the ideal choice for clients looking for the best possible drilling performance.
Strategic Collaboration Agreement With Equinor
In addition to these abovementioned contracts, Transocean and Equinor have entered into a strategic agreement that will allow them to explore future opportunities in areas such as technology development, operational efficiency and environmental sustainability.
The collaboration between Transocean and Equinor is expected to benefit both companies. Transocean will have the opportunity to work with a leading oil and gas company, and gain access to the latest technology and expertise. Equinor will help Transocean to reduce emissions and ensure environmental sustainability.
In conclusion, the agreements and strategic collaboration between Transocean and Equinor represent a significant milestone for both companies. The contracts are a testament to the quality of Transocean's assets and the expertise of its workforce. The strategic collaboration shows the commitment of both companies to sustainable development in the oil and gas industry. These initiatives make for a strong move as the oil and gas industry faces increasing pressure to reduce emissions and ensure environmental sustainability.
Transocean is a Swiss company that specializes in offshore drilling and drilling management services. It is the largest offshore drilling contractor in the world and provides rigs, equipment and manpower to oil and gas exploration and production companies on a contractual basis. The company focuses on ultra-deepwater and harsh environment drilling services.
Equinor is a Norwegian company that operates in 30 countries and is considered one of the top integrated energy companies in the world. It is the second-largest supplier of natural gas in Europe and a major seller of crude oil. The company is headquartered in Stavanger, Norway.
Zacks Rank and Key Picks
Currently, both Transocean and Equinor carry a Zacks Rank #3 (Hold). Investors interested in the energy sector might look at some better-ranked stocks like NGL Energy Partners NGL, sporting a Zacks Rank #1 (Strong Buy), and Energy Transfer ET, holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NGL Energy Partners: The company is worth approximately $367.70 million. Its shares have increased 19.5% in the past year.
NGL is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Energy Transfer LP: The company is valued at around $37.10 billion. It delivered an average earnings surprise of 11.43% for the last four quarters and its current dividend yield is 10.18%.
ET currently has a forward P/E ratio of 8.41. In comparison, its industry has an average forward P/E of 9.20, which means the company is trading at a discount to the group.
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Transocean Ltd. (RIG) : Free Stock Analysis Report
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Equinor ASA (EQNR) : Free Stock Analysis Report
