Reliance LoI (?) for Transocean rig

Vol 11, PW 23 (03 Apr 08) News in Brief

Transocean looks set to hire a second â€کnew build’ deepwater drillship to Reliance.

Market sources are rife with rumour that Reliance will issue a Letter of Intent (LoI) to Transocean for the 10,000-ft capable Deepwater Pacific 2, under construction at the Samsung shipyard in South Korea. Contacted by this report, a source neither confirms nor denies the report.

“Reliance is yet to finalise the tender,â€‌ we hear. “Transocean will make an announcement to the market if it issues a LoI.

â€‌ In April last year Transocean signed an agreement with Deepwater Pacific 2 owner California-based Pacific Drilling to market the rig, which is scheduled to be ready in September 2010. If true this will be the second â€کnew-build’ Reliance is expecting from Transocean.

Last year Transocean hired Deepwater Pacific 1 - also owned by Pacific Drilling – to Reliance for a 'firm' period of five years for $495,000 per day from July 2009 till December 2009 and $530,000 per day till July 2013.