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Transocean deals midwater rig, 2 jackups set aside

Mon Nov 2, 2009 6:41pm EST

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* Contracts midwater rig at $206,000/day in Myanmar

* Stacks a jackup, brings total to 23 of 65; idles another

SAN FRANCISCO, Nov 2 (Reuters) - Transocean Ltd (RIG.N), the largest oil and gas rig contractor, has found takers for an idle midwater rig despite anticipated weakness in that part of the market, the company said in a fleet update on Monday.

Transocean, which just last month said it had stacked two rigs of that class, said its Actinia rig would work in Myanmar at $206,000 per day, first for China's CNOOC (0883.HK) through December, and then for Thailand's PTT Exploration and Production PTTE.BK until May.

While the price is below the going rate in other regions, it compares with the $190,000 per day Actinia earned for nearly three years in India through July. Actinia drills in water up to 1,500 feet (460 m) deep, or less than half that of other midwater floating rigs.

Transocean's CEO predicted in September that seven of its 27 midwater rigs would be idle by year-end, before the market picked up next year. Excluding GSF Artic II, which is up for sale, that number had hit six before Actinia got a contract.

According to Transocean's latest fleet update summary, the Switzerland-based company has also stacked another shallow-water jackup rig, bringing the total to 23 out of 65, while idling another.

Executives and analysts have credited Transocean's aggressive stacking of jackups with helping to put a floor under the collapsing dayrates in that segment. (Reporting by Braden Reddall, editing by Leslie Gevirtz)



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