Transocean secures $243 million in contract extensions for deepwater rigs

STEINHAUSEN, Switzerland - Offshore drilling contractor Transocean Ltd. (NYSE:RIG), a $3.4 billion market cap company, has secured contract extensions worth approximately $243 million for two of its ultra-deepwater drillships, the company announced Wednesday. The news comes as the company’s stock trades at $3.23, showing significant volatility between its 52-week range of $1.97 to $4.74.

BP has exercised a 365-day option for the Deepwater Atlas in the U.S. Gulf of Mexico, extending the contract in direct continuation of its current agreement. This extension is expected to contribute approximately $232 million to Transocean’s backlog.

Additionally, Petrobras has exercised a 30-day option for the Deepwater Mykonos in Brazil, also in direct continuation of its existing program. This shorter extension will add approximately $11 million to the company’s backlog.

Transocean specializes in technically demanding sectors of the offshore drilling business, with particular focus on ultra-deepwater and harsh environment drilling services. The company owns or has partial ownership interests in and operates a fleet of 27 mobile offshore drilling units, consisting of 20 ultra-deepwater floaters and seven harsh environment floaters.

The contract extensions come as offshore drilling activity continues in key energy-producing regions. Transocean describes itself as operating "the highest specification floating offshore drilling fleet in the world," according to the press release statement.

These contract fixtures represent firm backlog additions for the Switzerland-based drilling contractor as it maintains its presence in strategic deepwater markets in the Americas. While the company posted an EBITDA of $1.26 billion in the last twelve months, analysts maintain a mixed outlook with price targets ranging from $2.50 to $5.50. For deeper insights into Transocean’s financial health and future prospects, including additional exclusive ProTips, check out the comprehensive research available on InvestingPro.

In other recent news, Transocean Ltd. announced a $500 million private offering of Senior Priority Guaranteed Notes due 2032, with an interest rate of 7.875% per annum. This offering is expected to close around mid-October, subject to customary conditions. Additionally, S&P Global Ratings has revised Transocean’s outlook to stable from negative, highlighting improved liquidity following recent equity issuances and a proposed debt offering. The company raised approximately $195 million through share issuances in July and August 2025, addressing most of its 2025 exchangeable bonds maturing in December.

Transocean also closed another equity issuance in late September, generating $421 million in net proceeds. In a related financial maneuver, Transocean International Limited, a wholly owned subsidiary, launched a cash tender offer to purchase up to $50 million of its outstanding notes. The tender offer targets two series of notes, prioritizing the 7.35% Senior Notes due December 2041 and the 7.00% Notes due June 2028. Furthermore, Transocean plans to offer 100 million shares in a public offering, with proceeds aimed at repaying or redeeming debt, including a portion of the $655 million in 8.00% Senior Notes due February 2027.

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