R&B Falcon Corporation Secures Major Contracts for Deepwater Fleet

Strategic Insights -

R&B Falcon Corporation, a leading player in the deepwater drilling industry, has finalized two significant contracts with Petrobras and Statoil. The company will provide a dynamically positioned offshore production unit, "SEILLEAN," and extend the drilling contract for its "DEEPWATER MILLENNIUM" drillship. These contracts are expected to generate substantial revenue for the company, with a total estimated value of over $472 million over the next four years.

Key Takeaways:

  • R&B Falcon Corporation has secured a six-year contract with Petrobras for the dynamically positioned offshore production unit, "SEILLEAN," with an estimated total value of approximately $206 million.
  • The company has also extended its drilling contract with Statoil for the "DEEPWATER MILLENNIUM" drillship, increasing the contract term from 30 months to four years and the estimated total value from approximately $166 million to approximately $266 million.
  • The "DEEPWATER MILLENNIUM" is expected to be delivered in the third quarter of 1999 and will commence operations on November 1, 1998.
  • R&B Falcon Corporation operates the world's largest fleet of marine-based drilling rigs, consisting of 101 units, including drillships, semisubmersible rigs, jackups, submersible rigs, tender rigs, and barge drilling and workover rigs.
  • The company is a clear industry leader in the deepwater market, with valued clients such as Petrobras and Statoil.
  • R&B Falcon Corporation also operates an inland marine towing and service business.

Statistics:

  • Estimated total contract value for the "SEILLEAN" contract: $206 million
  • Estimated total contract value for the extended "DEEPWATER MILLENNIUM" contract: $266 million
  • Total estimate contract value for both contracts: $472 million over four years
  • Number of drillships in R&B Falcon Corporation's fleet: 7 under construction, 12 total
  • Number of semisubmersible rigs in R&B Falcon Corporation's fleet: 2 under construction, 11 total
  • Number of jackups in R&B Falcon Corporation's fleet: 26
  • Number of barge drilling and workover rigs in R&B Falcon Corporation's fleet: 60
  • Number of units operated by R&B Falcon Corporation: 101
  • Estimated delivery date for the "DEEPWATER MILLENNIUM" drillship: Third quarter of 1999
  • Estimated commencement date for operations: November 1, 1998

Sources:

  • PRNewswire, July 6, 1998
  • R&B Falcon Corporation, NYSE: FLC
  • Petrobras
  • Statoil
  • R&B Falcon Drilling Company, Inc.