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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): April 4, 2005
TRANSOCEAN INC.
(Exact name of registrant as specified in its charter)
CAYMAN ISLANDS 333-75899 66-0582307
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
4 GREENWAY PLAZA
HOUSTON, TEXAS 77046
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (713) 232-7500
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
ITEM 7.01. REGULATION FD DISCLOSURE.
In accordance with Regulation FD, information is being furnished below in
connection with presentations to be made by the officers of Transocean Inc.
("we," "us," "our" or the "Company").
Our near-term market outlook for our High-Specification Floater fleet remains
positive. We believe there is currently an evident capacity constraint for
Fifth-Generation floaters through 2006 and that the industry is seeing some
dayrates for these units approaching $300,000 and some longer duration
contracts. We believe contracting opportunities are expanding beyond the
traditional deepwater areas of the U.S. Gulf of Mexico, Africa and Brazil to
other areas including the Far East, India and the Mediterranean Sea. We also
see the technical requirements of operators increasing, resulting in a
preference for Fifth-Generation units. We also anticipate opportunities for our
Other Deepwater Floaters to continue to improve, with some current dayrate
opportunities approaching $200,000. We also believe dayrates for Fourth
Generation rigs in the Barents Sea could approach $250,000. Overall, we think
there are a number of factors which should help sustain the current strong
deepwater drilling cycle. Among these are rising world oil demand, limited
production capacity, our belief that operators are more comfortable with a high
oil price environment, the access of global offshore acreage by national oil
companies, the limited potential supply additions in the short-term and
deepwater drilling success rates.
Our near-term market outlook for our Other Floaters fleet is also positive, but
we believe there is greater uncertainty relating to the duration of the current
cycle. Fleet utilization is up significantly and we are beginning to see an
increase in term contract opportunities. We believe there are current dayrate
opportunities for this sector of the industry in the range of $100,000 to
$160,000, although some opportunities are lower and are dependent upon a number
of factors including the duration of the potential contract. We anticipate that
this sector will be more sensitive to continued high crude prices than the
High-Specification Floater fleet.
Our near-term market outlook for our Jackup fleet is positive, with strong
customer demand in most regions. Utilization remains high, and dayrates
continue to improve. However, the speculative newbuilds in this sector is a
growing concern beyond 2005.
We would note that we are concerned about the impact of increasing wages and the
weakening dollar on our cost structure. We expect capital expenditures to be
$225 million to $250 million in 2005, including the purchase of the
semisubmersible M.G. Hulme, Jr., and $175 million to $225 million in 2006.
The statements made herein that are not historical facts are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Statements to the effect
that we "anticipate," "believe," "estimate," "expect," or "view" a particular
result or course of events, or that such result or course of events "could,"
"might," "may" or "should" occur, and similar expressions, are also intended to
identify forward-looking statements. Forward-looking statements include, but are
not limited to, statements relating to our near-term outlook for our
High-Specification Floater, Other Floater and Jackup fleets, dayrates, contract
opportunities, contract durations, the sustainability of the currently strong
demand for our rigs, preference for our Fifth-Generation units, the level of
capital expenditures and costs. Such statements are subject to numerous risks,
uncertainties and assumptions, including but not limited to, uncertainties
relating to the level of activity in offshore oil and gas exploration and
development, exploration success by producers, oil and gas prices, competition
and market conditions in the contract drilling industry, actions and approvals
of third parties, possible cancellation or suspension of drilling contracts as a
result of mechanical difficulties or performance, the Company's ability to enter
into and the terms of future contracts, the availability of qualified personnel,
labor relations and the outcome of negotiations with unions representing
workers, operating hazards, political and other uncertainties inherent in
non-U.S. operations (including the risk of war and civil disturbance, seizure or
damage of equipment and exchange and currency fluctuations), the impact of
governmental laws and regulations, the adequacy of sources of liquidity, the
effect of litigation and contingencies and other factors described above and
discussed in the Company's Form 10-K for the year ended December 31, 2004 and in
the Company's other filings with the SEC, which are available free of charge on
the SEC's website at www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those indicated. You should not place
undue reliance on forward-looking statements. Each forward-looking statement
speaks only as of the date of the particular statement, and we undertake no
obligation to publicly update or revise any forward looking statements.
The information in Item 7.01 of this report is being furnished, not filed.
Accordingly, the information in Item 7.01 of this report will not be
incorporated by reference into any registration statement filed by the Company
under the Securities Act of 1933, as amended, unless specifically identified
therein as being incorporated therein by reference. The furnishing of the
information in this report is not intended to, and does not, constitute a
determination or admission by the Company that the information in this report is
material or complete, or that investors should consider this information before
making an investment decision with respect to any security of the Company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRANSOCEAN INC.
Date: April 4, 2005 By: _______________________________
Name: William E. Turcotte
Title: Associate General Counsel