ping companies operating in the North Baltic Sea Area. According to the agreement signed the two companies will be working as a partnership offering premium voyage repair service for shipping companies operating from and to Finland, including summer time visiting cruise vessels in the Baltic Sea Area. The parties have agreed that Voyage repair service is quoted and managed by Aker Yards Lifecycle Services (AY-LCS) with the managers and workers of SRC Group O� . AY-LCS & SRC Group O� are supplying project managed skilled squads of men trained and experienced and in the relevant specific disciplines to enable all projects to be executed, on time, on budget and safety to highest possible standard.
MOPS to Exhibit at Workboat
MOPS Marine License Insurance will be joining professionals from throughout the maritime industry at the
International WorkBoat Show 2007. Considered the leading commercialmaritime event serving commercial vessel operators on offshore, inland, and coastal waters, and businesses that provide products and services to these markets, the WorkBoat Show 2007 will be held at the Morial Convention Center in New Orleans, November 28-30. MOPS representatives will be on hand to showcase the company's complete range of marine license insurance products and services and to network with colleagues from throughout the maritime industry. MOPS, North America's original and foremost marine license insurance program, provides prepaid legal defense insurance and income protection to U.S. Coast Guard licensed deck and engineering officers, state and federal pilots and tankermen serving aboard every type of commercial vessel on the oceans, harbors, Great Lakes and U.S. inland waters. MOPS is a division of the Lancer Insurance Company, which carries an A- Excellent rating from the A.M. Best Company.
Transocean Forms JV for Two Drillships
Transocean said that a subsidiary has exercised its option to purchase a 50 percent interest in a joint venture company with Pacific Drilling Limited. The joint venture company will own two ultra-deepwater Samsung-design drillships that are currently under construction in South Korea. The purchase price for Transocean's 50 percent interest in the joint venture and a promissory note issued by the joint venture was approximately $238 million, which represents half of the total costs incurred for the two joint venture drillships through the date of the option exercise. Beginning on October 18, 2010, Pacific Drilling will have the right to exchange its interest in the joint venture for Transocean Inc. ordinary shares or cash. The first joint venture drillship, Deepwater Pacific 1, has been awarded a firm commitment for a four-year drilling contract, which may be converted on or prior to October 2008 to a fiveyear drilling contract. The drilling contract is expected to commence in the third quarter of 2009, following shipyard construction, sea trials, mobilization to location and customer acceptance. Contract revenues which could be generated over the contract period are estimated to be $766m for the four-year term, or $935m for the five-year term, if converted. Under either contract term, estimated contract revenue of $89m
November 2007
could be generated over the first 180 days of the contract. The two drillships are currently under construction at Samsung Heavy Industries' shipyard in South Korea where the Transocean subsidiary is overseeing construction. The new drillships feature National Oilwell Varco drilling packages that include advanced offshore drilling technology, including significant off-line tubular-handling and stand-building capabilities, advanced mud system designs, advanced systems for building, storing and running several subsea trees and efficient riser and BOP (blowout preventer) handling systems. The drillships will have a variable deckload of approximately 20,000 metric tons. Deepwater Pacific 1 will be equipped to work in water depths of up to 12,000 feet and outfitted to construct wells up to 35,000 ft. deep. The estimated delivered cost for the Deepwater Pacific 1, including customer reimbursed equipment, is approximately $685m, excluding capitalized interest. Deepwater Pacific 2 will be equipped to work in water depths of up to 10,000 ft., upgradable to 12,000 feet, and outfitted to construct wells up to 35,000 ft. deep. The estimated delivered cost for the Deepwater Pacific 2, including customer reimbursed equipment, is approximately $665m, excluding capitalized interest. Construction is expected to be completed in the fourth quarter of 2009.
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