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Transocean Secures $123 Million Offshore Drilling Contract in India

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Transocean Ltd. (RIG - Free Report) , the world’s largest offshore drilling contractor and a leading provider of drilling management services, headquartered in Switzerland, has secured a significant contract from Reliance Industries Limited, a multinational conglomerate in India, headquartered in Mumbai. Reliance has granted RIG a binding Letter of Award for the Dhirubhai Deepwater KG1 project offshore India.
 

RIG’s Contract Overview and Timeline

Under the terms of the contract, RIG will provide a drilling rig to support the project for six wells. The estimated duration of the contract is 300 days, with operations expected to begin in the second quarter of 2026.
 

Role of Reliance and RIG’s Drilling Vessels

Dhirubhai Deepwater KG1 is a drilling vessel, specifically an ultra-deepwater drillship, used for exploring and extracting oil and gas from deep-sea locations. This is a highly specialized vessel equipped with advanced drilling technology to operate in extreme conditions, including deep water depths and harsh weather. This vessel’s role is crucial in advancing India's offshore oil and gas exploration and production capabilities.

The strategic contract will enable Reliance to advance its offshore drilling capabilities. By utilizing RIG’s cutting-edge technology and expertise, Reliance can enhance its exploration and production efficiency in deep-sea environments. The long-term nature of the agreement ensures a stable and reliable drilling solution, supporting the company’s ongoing efforts to meet its energy production goals and strengthen its market position.
 

Financial Impact and Opportunities for RIG Stock

The contract is anticipated to contribute approximately $123 million to RIG's backlog, excluding additional services and a mobilization fee. This agreement includes multiple options that, if exercised, should extend the rig's presence in India at the end of 2029.
 

Strategic Significance for Transocean

Securing this contract represents a significant achievement for RIG, strengthening its position in the offshore drilling sector. This deal not only strengthens the company’s market standing but also ensures a reliable revenue stream in the coming years, highlighting RIG’s continued growth and influence in the industry.
 

Zacks Rank and Key Picks

Currently, RIG has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like VAALCO Energy, Inc. (EGY - Free Report) , Core Laboratories Inc. (CLB - Free Report) and MPLX LP (MPLX - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Houston, TX-based Vaalco Energy is valued at $610.01 million. The oil and gas exploration and production company currently pays a dividend of 25 cents per share, or 4.25%, on an annual basis. EGY is an independent energy company principally engaged in the acquisition, exploration, development and production of crude oil and natural gas.

Core Laboratories is valued at $881.03 million. The company currently pays a dividend of 4 cents per share, or 0.21%, on an annual basis. Netherlands-based CLB is an oilfield services company, operating in more than 50 countries. The firm deals with providing reservoir management and production enhancement services to oil and gas companies.

Findlay, OH-based MPLX LP is valued at $43.52 billion. In the past year, its shares have risen 21.3%. MPLX owns and operates midstream energy infrastructure and logistics assets in the United States. It operates under two segments, namely Logistics and Storage, and Gathering and Processing.


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