Equatorial Guinea awards Transocean $80mn ultra-deepwater drilling contract

Offshore drilling contractor Transocean (NYSE: RIG) has won an $80mn contract for its “Deepwater Conqueror” drillship in Equatorial Guinea, extending the rig's contracted work into 2027.

The two-well campaign with an undisclosed operator is expected to last about 170 days and begin in 2027, immediately after the rig completes its current contract in the US Gulf, Transocean said. Transocean shares closed 9.0% higher at $5.94 on the New York Stock Exchange on September 15, although the broader energy sector also gained as oil prices rose sharply.

The backlog figure does not include additional services or mobilisation and demobilisation payments. Based on the stated backlog and estimated campaign duration, the award equates to roughly $471,000 of backlog per campaign day before those additional payments.

“Deepwater Conqueror” is an ultra-deepwater drillship that entered service in 2016 and is designed for water depths of up to 12,000 feet, with a maximum drilling depth of 40,000 feet. Transocean said in August that the rig had secured a two-well extension with an undisclosed operator in the US Gulf. The company has a fleet of 27 mobile offshore drilling units, including 20 ultra-deepwater floaters and seven harsh-environment floaters.

The Equatorial Guinea award will allow the rig to move directly from its current campaign into its next contract without an uncontracted gap, helping maintain utilisation of one of Transocean's high-specification assets.

The contract comes as Equatorial Guinea seeks to revive offshore exploration and stem declining hydrocarbon output. As IntelliNews reported in February 2025, Chevron (NYSE: CVX) had signed production-sharing contracts for blocks EG-06 and EG-11, while VAALCO Energy (NYSE/LSE: EGY) was advancing development plans for Block P and state-owned GEPetrol had taken over the mature Zafiro field in Block B from ExxonMobil (NYSE: XOM).

The upstream push has since broadened: Chevron secured reconnaissance licences covering five additional blocks in May 2026, while VAALCO retains a 60% working interest and operatorship of the undeveloped portion of Block P and is evaluating development options for the Venus discovery. GEPetrol has meanwhile brought Baker Hughes (NASDAQ: BKR) and privately held Hunt Oil into the redevelopment of Zafiro.

The need for new upstream investment has become increasingly pressing. The World Bank in June forecast Equatorial Guinea's economy would contract 3.5% in 2026 and 3.4% in 2027 as hydrocarbon production continues to decline.