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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): October 18, 2023

TRANSOCEAN LTD.

(Exact name of Registrant as specified in its charter)

Switzerland

    

001-38373

    

98-0599916

(State or other jurisdiction of

(Commission

(I.R.S. Employer

incorporation or organization)

File Number)

Identification No.)

Turmstrasse 30

   

Steinhausen, Switzerland

CH-6312

(Address of principal executive offices)

(zip code)

Registrant’s telephone number, including area code: +41 (41) 749-0500

​ ​

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:

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))

Securities registered pursuant to Section 12(b) of the Act

Title of each class

Trading Symbol

Name of each exchange on which registered:

Shares, CHF 0.10 par value

RIG

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 7.01Regulation FD.

We issue a report entitled “Transocean Fleet Status Report,” which includes drilling rig status and contract information. A report dated October 18, 2023, is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. You may subscribe to the Transocean “E-mail Alerts,” which based upon your selections will alert you to new Transocean press releases, financial and other updates. This free service will send you an automated email containing the Fleet Status Report press release and a link to our website: www.deepwater.com, where the reports are posted each quarter under “Investors/Fleet Status Report.” You may subscribe to this service in the footer of any of the website’s Investors pages by selecting “E-mail Alerts” then providing your email address. Please select the alerts to which you prefer to subscribe and click “Submit.”

Item 9.01  Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.

    

Description

99.1

Fleet Status Report, dated October 18, 2023

101

Interactive data files pursuant to Rule 405 of Regulation S-T formatted in Inline Extensible Business Reporting Language

104

Cover Page Interactive Data File (formatted as inline XBRL).

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 hereunto duly authorized.

TRANSOCEAN LTD.

Date: October 18, 2023

By:

/s/ Daniel Ro-Trock

Daniel Ro-Trock

Authorized Person

Graphic


Graphic

z

Updated: October 18, 2023

Revisions Noted in Bold

Primary

Dayrate on

Dayrate on

Hookload

Yr. (1)

Water

Drilling

Estimated

Estimated

Current

Previous

Footnote

Floater

Capacity

Entered

Depth

Depth

Contract

Expiration

Contract (3)

Contract (3)

Rig Type/Name

References

Type

(Short Tons)

Service

(Feet)

(Feet)

Location

Customer

Start Date (2)

Date (2)

(Dollars)

(Dollars)

Additional Comments

Rigs Under Construction (1)

Deepwater Aquila

(6), (7)

ship

1,400

TBA

12,000

40,000

Brazil

Petrobras

Jun-24

Jun-27

448,000

N/A

Ultra-Deepwater (28)

Deepwater Titan

(5)

ship

1,700

2023

12,000

40,000

USGOM

Chevron

May-23

Mar-28

455,000

N/A

Excludes additional services

Deepwater Atlas

(8), (25)

ship

1,700

2022

12,000

40,000

USGOM

Beacon

Jul-23

Dec-23

268,000

315,000

Excludes additional services

USGOM

Beacon

Dec-23

Sep-24

455,000

268,000

Excludes additional services

Deepwater Poseidon

(5)

ship

1,400

2018

12,000

40,000

USGOM

Shell

Sep-18

Feb-28

487,000

N/A

Excludes additional services

Deepwater Pontus

(5)

ship

1,400

2017

12,000

40,000

USGOM

Shell

Oct-17

Oct-27

484,000

N/A

Excludes additional services

Deepwater Conqueror

(22)

ship

1,400

2016

12,000

40,000

USGOM

Chevron

Apr-23

Mar-25

440,000

335,000

Excludes additional services

Deepwater Proteus

(5)

ship

1,400

2016

12,000

40,000

USGOM

Shell

Aug-16

May-26

490,000

N/A

Excludes additional services

Deepwater Thalassa

(5)

ship

1,400

2016

12,000

40,000

USGOM

Shell

Jul-16

Feb-26

481,000

N/A

Excludes additional services

Deepwater Asgard

(23)

ship

1,400

2014

12,000

40,000

USGOM

Hess Corporation

Apr-23

Apr-24

440,000

395,000

Excludes additional services

Deepwater Invictus

(5), (14)

ship

1,400

2014

12,000

40,000

Mexico

Not Disclosed

Nov-25

Nov-28

480,000

440,000

Ocean Rig Apollo

ship

1,250

2015

12,000

40,000

Stacked May-16

Ocean Rig Athena

ship

1,250

2014

12,000

40,000

Stacked Mar-17

Deepwater Skyros

(7)

ship

1,250

2013

12,000

40,000

Angola

TotalEnergies

Dec-22

Jun-24

310,000

195,000

Excludes additional services

Ocean Rig Mylos

ship

1,250

2013

12,000

40,000

Stacked Sep-16

Discoverer Inspiration

ship

1,130

2010

12,000

40,000

Idle Apr-23

Discoverer India

ship

1,130

2010

12,000

40,000

Stacked Jul-20

Discoverer Americas

ship

1,130

2009

12,000

40,000

Stacked Apr-16

Discoverer Clear Leader

ship

1,130

2009

12,000

40,000

Stacked Jun-19

Deepwater Corcovado

(6), (7)

ship

1,000

2011

10,000

35,000

Brazil

Petrobras

Aug-23

Jul-27

404,000

203,000

Deepwater Mykonos

(6), (7)

ship

1,000

2011

10,000

35,000

Brazil

Petrobras

Aug-23

Oct-23

-

N/A

Contract Preparation - 42 days

(6), (7)

Brazil

Petrobras

Oct-23

Dec-24

369,000

228,000

Deepwater Orion

(6), (7)

ship

1,000

2011

10,000

35,000

Brazil

Petrobras

Jan-24

Jan-27

421,000

N/A

Deepwater Champion

ship

1,000

2011

12,000

40,000

Stacked Feb-16

Dhirubhai Deepwater KG2

(6), (7)

ship

1,000

2010

12,000

35,000

Brazil

Petrobras

Nov-23

Jan-24

408,000

190,000

Brazil

Petrobras

Jan-24

Mar-24

-

N/A

Contract Preparation - 45 days

(6), (7)

Brazil

Petrobras

Mar-24

Jul-26

443,000

408,000

Petrobras 10000

(5), (6), (15)

ship

1,000

2009

12,000

37,500

Brazil

Petrobras

Sep-23

Sep-24

397,000

332,000

(5), (6), (15)

Brazil

Petrobras

Sep-24

Sep-25

408,000

397,000

(5), (6), (15)

Brazil

Petrobras

Sep-25

Sep-26

421,000

408,000

(5), (6), (15)

Brazil

Petrobras

Sep-26

Sep-27

433,000

421,000

(5), (6), (15)

Brazil

Petrobras

Sep-27

Sep-28

446,000

433,000

(5), (6), (15)

Brazil

Petrobras

Sep-28

Jul-29

460,000

446,000

Dhirubhai Deepwater KG1

ship

1,000

2009

12,000

35,000

India

Reliance

Sep-23

Oct-23

330,000

169,500

India

Reliance

Oct-23

Dec-23

348,000

330,000

Dec-23

Feb-24

-

N/A

Contract Preparation - 45 days

India

ONGC

Feb-24

Oct-25

347,500

348,000

Development Driller III

semi

1,000

2009

7,500

37,500

Idle Aug-23

GSF Development Driller I

semi

1,000

2005

7,500

37,500

Stacked Nov-20

Deepwater Nautilus

semi

1,000

2000

8,000

30,000

Stacked Nov-22

Discoverer Luanda

ship

750

2010

7,500

40,000

Stacked Feb-18

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Estimated Average Contract Dayrates (5)

$416,000

$427,000

$427,000

$437,000


Primary

Dayrate on

Dayrate on

Hookload

Yr. (1)

Water

Drilling

Estimated

Estimated

Current

Previous

Footnote

Floater

Capacity

Entered

Depth

Depth

Contract

Expiration

Contract (3)

Contract (3)

Rig Type/Name

References

Type

(Short Tons)

Service

(Feet)

(Feet)

Location

Customer

Start Date (2)

Date (2)

(Dollars)

(Dollars)

Additional Comments

Harsh Environment (9)

Transocean Norge

(6), (7), (11)

semi

1,000

2019

10,000

40,000

Norway

Wintershall DEA/OMV

May-23

Jan-24

345,000

345,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Jan-24

Apr-24

415,000

345,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Apr-24

Aug-24

365,000

415,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Aug-24

Oct-24

415,000

365,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Oct-24

Nov-24

415,000

415,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Nov-24

Dec-24

365,000

415,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Dec-24

Feb-25

420,000

365,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Feb-25

Mar-25

415,000

420,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Mar-25

Dec-25

420,000

415,000

Excludes additional services

(6), (7), (11)

Norway

Wintershall DEA/OMV

Dec-25

Jun-27

420,000

420,000

Excludes additional services

Transocean Spitsbergen

(5), (6), (7)

semi

1,000

2010

10,000

30,000

Norway

Equinor

Jun-23

Nov-23

312,000

297,000

Excludes additional services

(5), (6), (7)

Norway

Equinor

Nov-23

Apr-25

334,000

311,000

Excludes additional services

Transocean Barents

(7)

semi

1,000

2009

10,000

30,000

Lebanon

TotalEnergies

Aug-23

Oct-23

365,000

310,000

(7)

Cyprus

ENI (TotalEnergies Farmout)

Oct-23

Jan-24

370,000

365,000

Transocean Enabler

(5), (6), (7)

semi

750

2016

1,640

28,000

Norway

Equinor

Jul-23

Mar-24

413,000

422,000

(5), (6), (7)

Norway

Equinor

Mar-24

Oct-25

390,000

413,000

Transocean Encourage

(5), (6), (7)

semi

750

2016

1,640

28,000

Norway

Equinor

Jun-23

Nov-23

409,000

405,000

(5), (6), (7)

Norway

Equinor

Nov-23

Feb-25

364,000

409,000

(5), (6), (7)

Norway

Not Disclosed

Feb-25

Feb-26

465,000

364,000

Transocean Endurance

semi

750

2015

1,640

28,000

Australia

Not Disclosed

Jan-24

Feb-25

380,000

385,000

Transocean Equinox

semi

750

2015

1,640

28,000

Australia

Not Disclosed

Feb-24

Nov-24

455,000

477,000

Australia

Not Disclosed

Feb-25

Mar-26

485,000

455,000

Paul B. Loyd, Jr.

(4), (5), (6), (7)

semi

750

1990

2,000

25,000

UKNS

Harbour Energy

Aug-23

Nov-23

175,000

175,000

(4), (5), (6), (7)

UKNS

Harbour Energy

Nov-23

Aug-24

175,000

175,000

Henry Goodrich

semi

750

1985/2007

5,000

30,000

Stacked Mar-20

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Estimated Average Contract Dayrates (5)

$339,000

$351,000

$353,000

$362,000


Primary

Dayrate on

Dayrate on

Hookload

Yr. (1)

Water

Drilling

Estimated

Estimated

Current

Previous

Footnote

Floater

Capacity

Entered

Depth

Depth

Contract

Expiration

Contract (3)

Contract (3)

Rig Type/Name

References

Type

(Short Tons)

Service

(Feet)

(Feet)

Location

Customer

Start Date (2)

Date (2)

(Dollars)

(Dollars)

Additional Comments

Fixed-Price Options - See Footnote 9

Ultra-Deepwater (1)

Deepwater Mykonos

(6), (7), (19)

ship

1,000

2011

10,000

35,000

Brazil

Petrobras

Jan-25

Apr-25

369,000

Harsh Environment (5)

Transocean Spitsbergen

(5), (6), (7)

semi

1,000

2010

10,000

30,000

Norway

Equinor

Apr-25

Jul-25

366,000

Transocean Barents

(7), (10)

semi

1,000

2009

10,000

30,000

TBD

TotalEnergies

Jan-24

Mar-24

TBD

(7), (10)

semi

2009

10,000

30,000

TBD

TotalEnergies

Mar-24

Jun-24

TBD

Transocean Endurance

semi

750

2015

1,640

28,000

Australia

Not Disclosed

Feb-25

Mar-25

390,000

Australia

Not Disclosed

Mar-25

May-25

390,000

Australia

Not Disclosed

May-25

Jul-25

390,000

Australia

Not Disclosed

Jul-25

Jan-26

390,000

Transocean Enabler

(5), (6), (7)

semi

750

2016

1,640

28,000

Norway

Equinor

Oct-25

Nov-25

430,000

(5), (6), (7)

Norway

Equinor

Nov-25

Dec-25

430,000

(5), (6), (7)

Norway

Equinor

Dec-25

Dec-25

430,000

(5), (6), (7)

Norway

Equinor

Dec-25

Jan-26

430,000

(5), (6), (7)

Norway

Equinor

Jan-26

Feb-26

430,000

(5), (6), (7)

Norway

Equinor

Feb-26

Feb-26

430,000

(5), (6), (7)

Norway

Equinor

Feb-26

Mar-26

430,000

(5), (6), (7)

Norway

Equinor

Mar-26

Jun-26

430,000

Transocean Equinox

semi

750

2015

1,640

28,000

Australia

Not Disclosed

Nov-24

Jan-25

455,000

Australia

Not Disclosed

Mar-26

May-26

505,000

Australia

Not Disclosed

May-26

Jul-26

505,000

Australia

Not Disclosed

Jul-26

Sep-26

505,000

Australia

Not Disclosed

Sep-26

Oct-26

505,000

Australia

Not Disclosed

Nov-26

Dec-26

505,000

Australia

Not Disclosed

Dec-26

Jan-27

510,000

Australia

Not Disclosed

Jan-27

Mar-27

510,000

Australia

Not Disclosed

Mar-27

Apr-27

510,000

Australia

Not Disclosed

Apr-27

May-27

520,000

Australia

Not Disclosed

May-27

Jun-27

520,000

Australia

Not Disclosed

Jun-27

Jun-27

520,000

Australia

Not Disclosed

Jul-27

Jul-27

540,000

Australia

Not Disclosed

Jul-27

Aug-27

540,000

Australia

Not Disclosed

Aug-27

Oct-27

540,000

Australia

Not Disclosed

Oct-27

Oct-27

540,000

Australia

Not Disclosed

Nov-27

Nov-27

540,000

Australia

Not Disclosed

Dec-27

Dec-27

540,000

Australia

Not Disclosed

Dec-27

Jan-28

485,000

Australia

Not Disclosed

Jan-28

Jan-28

485,000

Australia

Not Disclosed

Jan-28

Feb-28

540,000

Australia

Not Disclosed

Feb-28

Apr-28

540,000


Graphic

Revisions Noted in Bold

Footnotes

(1)

Dates shown are the original service date and the date of the most recent upgrade, if any.

(2)

Estimated Contract Start and Estimated Expiration Dates are generally calculated as follows: (1) for events estimated to occur between the 1st and 15th of a month, the previous month or quarter is reported (i.e. a contract which is estimated to commence on March 4, 2021 will be reported as commencing in February 2021) and (2) for events estimated to occur between the 16th and the end of a month, the actual month or quarter is reported (i.e. a contract which is estimated to commence on March 24, 2021 will be reported as commencing in March 2021). Expiration dates represent the company's current estimate of the earliest date the contract for each rig is likely to expire. Some rigs have two or more contracts in continuation, so the last line shows the estimated earliest availability. Many contracts permit the customer to extend the contract.

(3)

Represents the full operating dayrate, although the average dayrate over the term of the contract will be lower and could be substantially lower. Does not reflect incentive programs which are typically based on the rig's operating performance against a performance curve. Please refer to the “Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations” section of the Disclaimers & Definitions for a description of dayrates. This column may not reflect the rate currently being received under the contract as a result of an applicable standby rate or other rate, which typically is less than the contract dayrate.

(4)

Paul B. Lloyd, Jr. is classified as held for sale. Transocean will operate the rig until the transaction closes (expected by YE23).

(5)

If the dayrate is disclosed, reflects the current contracted dayrate which could reflect prior cost escalations, or de-escalations, and could change in the future due to further cost escalations, or de-escalations.

(6)

If the dayrate is disclosed, reflects the current contracted dayrate which, along with costs, includes a foreign currency component. Changes in the value of the U.S. dollar relative to certain foreign currencies will result in an adjustment to the dayrate according to the terms of the contract. The dayrate adjustment generally offsets the foreign currency exchange-related change in costs.

(7)

If the dayrate is disclosed, the contract provides for a bonus incentive opportunity not reflected in the current contract dayrate.

(8)

Customer pays an additional MPD standby rate and may call-off full MPD services to be provided at any time resulting in incremental $32,000 MPD operating rate to be paid to Transocean.

(9)

Fixed price options may be exercised at the customer’s discretion. During periods when dayrates on new contracts are increasing relative to existing contracts, the likelihood of customers exercising fixed price options increases. During periods when dayrates on new contracts are decreasing relative to existing contracts, the likelihood of customers exercising fixed price options declines.

(10)

The first priced option may be exercised for an estimated 67-day term in the East Mediterranean Sea at a dayrate of $375K/d. The second priced option may be exercised for an estimated 67-day term in the East Mediterranean Sea at a dayrate of $390K/d. These options may be exercised independently.

(11)

We hold a 33.0% ownership interest in the unconsolidated company owning the rig. Our customer has entered into the drilling contract with the operating company, a wholly owned subsidiary. Our contract backlog includes and we will recognize 100% of the contract drilling revenues associated with the drilling contract.

(12)

Reserved

(13)

Reserved

(14)

We have assigned the contract to the Deepwater Invictus. However, under the terms of the contract, Transocean has the right to designate one of three rigs: Deepwater Invictus, Deepwater Proteus or Deepwater Thalassa by November 1, 2024. The commencement window is November 1, 2025 to August 1, 2026. The contractual dayrate is subject to a semi-annual cost adjustment mechanism with a baseline established as of July 1, 2023.

(15)

The dayrate disclosed excludes a 5% royalty related to Transocean's dual activity patent.

(16)

Reserved

(17)

Reserved

(18)

Reserved

(19)

Contract includes multiple option periods of minimum 90 days up to 279 days.

(20)

Reserved

(21)

Reserved

(22)

In addition to operating dayrate, up to an incremental $39,000 per day may be paid for additional products and services.

(23)

In addition to operating dayrate, up to an incremental $40,000 per day may be paid for additional products and services.

(24)

Reserved

(25)

The prior dayrate of $315,000 included a lump sum payment of $11.8M prorated over the estimated 255-day duration of the original drilling program.


Graphic

Disclaimers & Definitions

The information contained in this Fleet Status Report (the “Information”) is as of the date of the report only and is subject to change without notice to the recipient. Transocean Ltd. assumes no duty to update any portion of the Information.

DISCLAIMER. NEITHER TRANSOCEAN LTD. NOR ITS AFFILIATES MAKE ANY EXPRESS OR IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE) REGARDING THE INFORMATION CONTAINED IN THIS REPORT, WHICH INFORMATION IS PROVIDED “AS IS.” Neither Transocean Ltd. nor its affiliates will be liable to any recipient or anyone else for any inaccuracy, error or omission, regardless of cause, in the information set forth in this report or for any damages (whether direct or indirect, consequential, punitive or exemplary) resulting therefrom.

No Unauthorized Publication or Use. All information provided by Transocean in this report is given for the exclusive use of the recipient and may not be published, redistributed or retransmitted without the prior written consent of Transocean.

Customer Contract Duration, Timing and Dayrates and Risks Associated with Operations. The duration and timing (including both starting and ending dates) of the customer contracts are estimates only, and customer contracts are subject to cancellation, suspension and delays for a variety of reasons, including some beyond the control of Transocean. Also, the dayrates set forth in the report are estimates based upon the full contractual operating dayrate. However, the actual average dayrate earned over the course of any given contract will be lower and could be substantially lower. The actual average dayrate will depend upon a number of factors (rig downtime, suspension of operations, etc.) including some beyond the control of Transocean. Our customer contracts and operations are generally subject to a number of risks and uncertainties, and we urge you to review the description and explanation of such risks and uncertainties in our filings with the Securities and Exchange Commission (SEC), which are available free of charge on the SEC’s website at www.sec.gov. The dayrates do not include revenue for mobilizations, demobilizations, upgrades, shipyards or recharges.

Out of Service. The time associated with committed shipyards, upgrades, surveys, repairs, regulatory inspections, contract preparation or other committed activity on the rig and is not expected to earn an operating dayrate, Contract preparation refers to periods during which the rig is undergoing modifications or upgrades as a result of contract requirements.

The references included in this Fleet Status Report may not be firm and could change significantly based on a variety of factors. Any significant changes to our estimates of out of service time will be reflected in subsequent Fleet Status Reports, as applicable.

In some instances such as certain mobilizations, upgrades and shipyards, we are paid compensation by our customers that is generally recognized over the life of the primary contract term of the drilling contract.

Forward-Looking Statement. The statements made in the Fleet Update 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. Forward-looking statements made in the Fleet Update include, but are not limited to, statements involving the estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations and planned shipyard projects and other out of service time. 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, shipyard delays, actions and approvals of third parties, possible cancellation or suspension of drilling contracts as a result of mechanical difficulties or performance, Transocean’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, factors affecting the duration of contracts including well-in-progress provisions, the actual amount of downtime, factors resulting in reduced applicable dayrates, hurricanes and other weather conditions, terrorism, political and other uncertainties inherent in non-U.S. operations (including the risk of war, 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 Transocean’s most recently filed Form 10-K, in Transocean’s Forms 10-Q for subsequent periods and in Transocean’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, except as required by law.

Fleet Classifications. Transocean uses classifications for its drillships and semisubmersibles as follows: “Ultra-Deepwater” are the latest generation of drillships and semisubmersible rigs and are capable of drilling in water depths equal to or greater than 7,500 feet; “Harsh Environment” are premium rigs equipped for year-round operations in harsh environments.

Stacking. An "Idle" rig is primarily between contracts, readily available for operations, and operating costs are typically at or near normal levels. A "Stacked" rig, on the other hand, is primarily manned by a reduced crew or unmanned and typically has reduced operating costs and is (i) preparing for an extended period of inactivity, (ii) expected to continue to be inactive for an extended period, or (iii) completing a period of extended inactivity. However, stacked rigs will continue to incur operating costs at or above normal operating costs for approximately 30 days following initiation of stacking.