About Transocean

Transocean Ltd. operates as an international provider of offshore contract drilling services for oil and gas wells. As of February 14, 2023, the company owned or had partial ownership interests in and operated 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters. Additionally, as of February 14, 2023, the company was constructing one ultra-deepwater drillship and held a noncontrolling ownership interest in a company that is constructing one ultra-deepwater drillship. The company provides, as its primary business, contract drilling services in a single operating segment, which involves contracting the company’s mobile offshore drilling rigs, related equipment and work crews to drill oil and gas wells. The company specializes in technically demanding regions of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services. The company’s drilling fleet is one of the most versatile fleets in the world, consisting of drillships and semisubmersible floaters used in the support of offshore drilling activities and offshore support services on a worldwide basis. Drilling Fleet The company provides contract drilling services using its fleet of mobile offshore drilling units, including both drillships and semisubmersibles, broadly referred to as floaters. Floaters are designed to operate in locations away from port for extended periods of time and have living quarters for the crews, a helicopter landing deck and storage space for drill pipe, riser and drilling supplies. The company’s drilling units and related equipment are suitable for both exploration and development, and the company engages in both types of activities. Drillships are floating vessels that are shaped like conventional ships, generally self-propelled and considered to be the most mobile of the major rig types. Drillships typically have greater deck load and storage capacity than semisubmersible rigs, which provides logistical and resupply efficiency benefits for customers. Drillships are generally better suited to operations in calmer sea conditions and typically do not operate in areas considered to be harsh environments. The company’s high-specification drillships are equipped with dynamic positioning thruster systems, which allow them to maintain position without anchors through the use of onboard propulsion and station-keeping systems. The company has 22 ultra-deepwater drillships that are, and two ultra-deepwater drillships under construction that will be, equipped with the company’s patented dual-activity technology. In addition, the company’s newbuild drillships under construction will be equipped with dynamic positioning thruster systems and industry-leading hoisting capacity. Semisubmersibles are floating vessels that can be partially submerged by means of a water ballast system such that the lower column sections and pontoons are below the water surface during drilling operations. Semisubmersibles are known for stability, making them well suited for operating in rough sea conditions. Semisubmersible floaters are capable of maintaining their position over a well either through dynamic positioning or the use of mooring systems. Although most semisubmersible rigs are relocated with the assistance of tugs, some units are self-propelled and move between locations under their own power when afloat on pontoons. Four of the company’s 13 semisubmersibles are equipped with dual-activity technology and also have mooring capability. Two of these four dual-activity units are custom-designed, high-capacity semisubmersible drilling rigs, equipped for year-round operations in harsh environments, such as those of the Norwegian continental shelf and sub-Arctic waters. The company’s floater fleet consists of ultra-deepwater floaters and harsh environment floaters that are designed with high-specification capabilities to operate in the technically demanding regions of the global offshore drilling business. Ultra-deepwater floaters are equipped with high-pressure mud pumps and are capable of drilling in water depths of 4,500 feet or greater. Harsh environment floaters are capable of drilling in harsh environments in water depths between 1,500 and 10,000 feet and have greater displacement, which offers larger variable load capacity, more useable deck space and better motion characteristics. Drilling Units—As of February 9, 2023, the company owned all of the drilling rigs in its fleet, except for the following: the ultra-deepwater floater Petrobras 10000, which is subject to a finance lease through August 2029; the harsh environment floater Transocean Norge, which is owned through the company’s 33 percent noncontrolling ownership interest in Orion Holdings (Cayman) Limited (together with its subsidiary, ‘Orion’); and the newbuild ultra-deepwater drillship under construction, to be named Deepwater Aquila, which is owned through the company’s noncontrolling ownership interest in Liquila Ventures Ltd. (together with its subsidiaries, ‘Liquila’). Drilling Contracts The company’s offshore drilling services contracts are individually negotiated and vary in their terms and conditions. The company obtains most of the company’s drilling contracts through bidding processes in competition against other drilling services contractors and through direct negotiations with operators. The company’s contracts also typically include a provision that allows the customer to extend the contract to finish drilling a well-in-progress. Markets The company’s operations are geographically dispersed in oil and gas exploration and development areas throughout the world. The company operates in a single, global offshore drilling market, as the company’s drilling rigs are mobile assets and can be moved according to prevailing market conditions. As of February 9, 2023, the drilling units in the company’s fleet, including stacked and idle rigs, but excluding rigs under construction, were located in the U.S. Gulf of Mexico (nine units), Greece (seven units), the Norwegian North Sea (six units), Brazil (five units), Malaysia (three units), the United Kingdom (the ‘U.K.’) North Sea (three units), Angola (one unit), Canada (one unit), India (one unit) and Suriname (one unit). The company categorize the sectors of the floater market in which the company operates as follows: ultra-deepwater and deepwater, harsh environment, and midwater. The company typically employs its ultra-deepwater floaters to service the ultra-deepwater and deepwater sector, and the company employs its harsh environment floaters to service all three sectors. The company generally views the ultra-deepwater and deepwater market sector as water depths beginning at 4,500 feet and extending to the maximum water depths in which rigs are capable of drilling, which is up to 12,000 feet. The midwater market sector includes water depths from approximately 300 feet to approximately 4,500 feet. The market for offshore drilling rigs and related services reflects the company’s customers’ demand for equipment for drilling exploration, appraisal and development wells and for performing maintenance on existing production wells. Activity levels of energy companies, including integrated energy companies, independent energy companies and, to a lesser extent, national energy companies are largely driven by the worldwide demand for energy, including crude oil and natural gas. Worldwide energy supply and demand drives oil and natural gas prices, which, in turn, impact energy companies’ ability to fund investments in exploration, development and production activities. Customers The company provides its offshore drilling services to most of the leading integrated energy companies or their affiliates, as well as for many government-owned or government-controlled energy companies and other independent energy companies. For the year ended December 31, 2022, the company’s most significant customers were Shell plc (together with its affiliates, ‘Shell’), Equinor ASA (together with its affiliates, ‘Equinor’) and Petróleo Brasileiro S.A. (together with its affiliates, ‘Petrobras’), representing approximately 33 percent, 25 percent and 11 percent, respectively, of the company’s consolidated operating revenues. Joint Venture, Agency and Sponsorship Relationships and Other Investments As of December 31, 2022, the company held partial ownership interests in companies organized in the Cayman Islands, the U.S., Norway, Canada and other countries. As of December 31, 2022, among other equity investments, the company held a 33 percent ownership interest in Orion, an unconsolidated Cayman Islands exempted company that owns the harsh environment semisubmersible Transocean Norge and the company held a 20 percent ownership interest in Liquila, an unconsolidated Bermuda company formed to construct, own and operate the newbuild ultra-deepwater drillship Deepwater Aquila, which is under construction. History Transocean Ltd., a Swiss corporation, was founded in 1926. The company was incorporated in 2017.