Transocean Ltd. (RIG)

[Mother Lode]

DJ Transocean Deal Shows Rate and Term Possible in Tightening Market -- Market Talk
9:13 AM ET 7/18/23 | Dow Jones

0913 ET - The world's largest offshore oil driller Transocean says it's made a three-year deal with an "independent operator" to do work in the Gulf of Mexico offshore Mexico for $518M, and will begin as early as 4Q 2025. "While some investors have been anticipating that the drillers could trade rate for term in order to fill their backlogs, this contract points to a sufficiently tight market for high spec assets for the Drillers to secure both rate and term," says Citi's Scott Gruber in a note. "For Transocean specifically, the ability to build long dated backlog at leading edge dayrates further improves their deleveraging prospects." Transocean shares jump 3.7% pre-market. ([e-mail])