Beacon Offshore Secures Drillship for Shenandoah Work

Operator inks $252 million deal for use of newbuild drillship.

illustration of shenandoah platform location

Beacon Offshore awarded Transocean a $252-million contract for use of its newbuild ultradeepwater drillship

Deepwater Atlas to work in the Shenandoah field in the US Gulf of Mexico (GOM). The deal also includes a $30-million mobilization fee from Southeast Asia to the GOM.

The Shenandoah program comprises two phases. Once delivered from the shipyard, the Deepwater Atlas is expected to begin operations in Q3 2022, initially using dual blowout preventers (BOP) rated to 15,000 psi. The duration of the drilling program is approximately 255 days and should result in $80 million in contract drilling revenue.

Upon completion of initial drilling, a 20,000-psi BOP will be installed on the rig, making it Transocean’s second asset with a 20,000-psi-rated well-control system. The BOP installation and commissioning is expected to last 45 to 60 days, contributing $17 million in revenue. Following the 20,000-psi BOP installation, the Deepwater Atlas will begin the well completion program. The approximate duration of this phase is 275 days and should contribute $125 million in contract drilling revenue.