Oil Report

Transocean says well at BP discovery deepest ever

* Tiber well is 35,050 feet deep in 4,130 feet of water

* Comes a day after 4 Transocean shallow-water rigs idled

SAN FRANCISCO, Sept 2 (Reuters) - Transocean Ltd RIG.N declared a well that one of its rigs drilled with BP Plc BP.L to be the oil and gas industry's deepest -- another deepwater success in the face of a deteriorating shallow-water market.

Earlier on Wednesday, Britain’s BP had announced a “giant” oil find in the same area of the Gulf of Mexico -- the Tiber Prospect in Keathley Canyon block 102. [ID:nL2530648]

Transocean, the world’s largest offshore rig contractor, said its Deepwater Horizon rig drilled the Tiber well to a vertical depth of 35,050 feet (10,683 metres) in 4,130 feet of water.

On the other hand, more bad news has emerged in shallower waters. Transocean said on Tuesday three of its jackup rigs had been taken off the market, or stacked -- the GSF Monitor in Trinidad, GSF Key Hawaii in Bahrain and GSF Rig 103 in Egypt.

Transocean said another jackup, GSF Key Manhattan, was now idle in Egypt, though it was still due to start a contract next February for Italy's Eni ENI.MI.

Analysts at Houston-based Tudor, Pickering, Holt & Co Securities described the Transocean fleet update as a “slight negative”, but said the company remained a preferred offshore drilling stock and that it was “no surprise” the jackup market remains challenged.

The fleet update showed one of the Transocean jackups still working, the GSF Adriatic IX, now has a contract in Nigeria at a rate of $97,000 per day, down from $188,000 previously. (Reporting by Braden Reddall, editing by Leslie Gevirtz)