Transocean Ltd. landed a major contract with Chevron USA Inc., part of Chevron Corp. The deal includes rig design and a construction management contract, along with a five-year drilling contract with Chevron USA for one of its two ultra-deepwater drill-ships under construction in Singapore. The drilling contract has an estimated backlog of $830 million, excluding mobilization and reimbursables.
Should the contract be terminated for convenience by the customer, Transocean will be compensated for its incremental 20,000 psi subsea investment in the rig. Also, a termination for convenience occurring after April 2020 would be subject to a substantial termination fee.