RIG $148.09 Transocean in 5-yr, $1.06 bln rig contract renewal
Thu Jun 19, 2008 5:06pm EDT
HOUSTON, June 19 (Reuters) - Transocean Inc (RIG.N: Quote, Profile, Research, Stock Buzz), the world's largest offshore contract driller, said on Thursday a contract has been renewed for one of its ultra-deepwater rigs that may be worth as much as $1.06 billion.
The rig will be contracted at a rate of about $581,000 per day, more than double its prior daily rate of $208,000.
The company's GSF Development Driller II, capable of drilling in water depths of 7,500 feet, was awarded a five-year contract extension by a subsidiary of BP Plc (BP.L: Quote, Profile, Research, Stock Buzz), the company said.
Record-high crude oil prices have created increased demand for floating rigs and drill ships that operate in the deepest waters. Contractors like Transocean have benefited as tight supplies have pushed day rates above $600,000 in some cases.
The renewal starts in November 2008. (Reporting by Anna Driver in Houston; editing by Jeffrey Benkoe)
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