Transocean company announced that it has awarded a firm contract worth %252 million from BOE Exploration & Production LLC (BOE) for Transocean’s newbuild ultra-deepwater drillship, the Deepwater Altas, including a mobilization fee of $30 million, a press release reported.

The contract provides a significant performance bonus opportunity based upon agreed operating metrics. The Deepwater Atlas is expected to start operations in Q3 2022.

The company elaborated that the initial drilling program is expected to take 225 days and result in approximately $80 million of contract drilling revenue.

Following that, a 20,000 psi (pounds per square inch) BOP will be installed on the rig and is expected to take from 45 to 60 days, contributing approximately $17 million of revenue.

The second phase of the project is expected to last about 275 days with revenues amount to $125 million.

Jeremy Thigpen, Transocean’s CEO “This is a significant milestone for Transocean, BOE and the Shenandoah partners, as we jointly venture into this new frontier of ultra-deepwater drilling.We are extremely pleased to have secured the maiden contract for the Deepwater Atlas; the first of our two 8th generation ultra-deepwater drillships that will enter the market in 2022, both of which will be outfitted for 20,000 psi ultra-deepwater well operations.”

“We are very encouraged by the growing list, across multiple customers, of 20,000 psi opportunities in the U.S. Gulf of Mexico. And, with the only two assets in the world specifically designed to maximize efficiencies for 20,000 psi well completions, we are the undisputed market leader in this space, and thus excited about the future prospects for these state-of-the art assets,” Thigpen added.