Businessweek

Transocean Ltd. provides offshore contract drilling services for oil and gas wells worldwide. The company’s primary business is to contract its drilling rigs, related equipment, and work crews primarily on a dayrate basis to drill oil and gas wells. It also provides oil and gas drilling management services on either a dayrate basis or a completed-project, fixed price or turnkey basis, as well as drilling engineering and drilling project management services. Drilling Fleet As of February 20, 2013, the company owned or had partial ownership interests in and operated 82 mobile offshore drilling units. Its fleet consisted of 48 high-specification floaters (27 ultra-deepwater floaters, 14 deepwater floaters, and 7 harsh environment semisubmersibles and drillships), 25 midwater floaters, and 9 high-specification jackups. The company also had six ultra-deepwater drillships and three high-specification jackups under construction or under contract to be constructed. Majority of the company’s drilling equipment is suitable for both exploration and development drilling, and it engages in both types of drilling activity. Its drilling fleet could be characterized as floaters, including drillships and semisubmersibles; and jackups. Markets The company’s operations are geographically dispersed in oil and gas exploration and development areas worldwide. As of February 14, 2013, the company’s fleet associated with its continuing operations was located in the United States Gulf of Mexico (15 units), the United Kingdom (U.K.) North Sea (12 units), Brazil (10 units), the Far East (9 units), Norway (7 units), Nigeria (7 units), India (5 units), West African countries other than Nigeria and Angola (5 units), Angola (4 units), Australia (3 units), Canada (2 units), the Middle East (2 units), and Denmark (1 unit). Contract Drilling Services The company’s contracts to provide offshore drilling services are individually negotiated and vary in their terms and provisions. Its contracts also include a provision that allows the customer to extend the contract to finish drilling a well-in-progress. Drilling Management Services The company provides drilling management services primarily on a turnkey basis through Applied Drilling Technology Inc., a Texas corporation and its wholly owned subsidiary, which primarily operates in non-United States market sectors outside of the North Sea, and through ADT International, a division of one of its U.K. subsidiaries, which primarily operates in the North Sea. As part of its drilling management services, the company provides planning, engineering, and management services. In addition to drilling management services, the company participates in project management operations that include providing certain planning, management and engineering services, purchasing equipment and providing personnel and other logistical services to customers. Joint Venture, Agency and Sponsorship Relationships, and Other Investments The company is a participant in various joint venture drilling companies, principally in Angola, Indonesia, Malaysia, and Nigeria. It holds a 65 percent interest in Angola Deepwater Drilling Company Limited (ADDCL), a consolidated Cayman Islands joint venture company formed to own Discoverer Luanda. Its local partner, Angco Cayman Limited, a Cayman Islands company, holds the remaining 35 percent interest in ADDCL. The company holds a 70 percent interest in Transocean Drilling Services Offshore Inc. (TDSOI), a consolidated British Virgin Islands joint venture company formed to own Transocean Honor. Its local partner, Angco II, a Cayman Islands company, holds the remaining 30 percent interest in TDSOI. The company holds a 65 percent interest in TSSA – Servicos de Apoio, Lda. (TSSA), a consolidated Angola limited liability company formed to operate Discoverer Luanda and Transocean Honor. Its local partner, Angco Cayman Limited, a Cayman Islands company, holds the remaining 35 percent interest in TSSA. Under a management services agreement with TSSA, the company provides operating management services for Discoverer Luanda and Transocean Honor. Customers The company engages in offshore drilling services for various international oil companies or their affiliates, as well as for various government-controlled oil companies and independent oil companies. For the year ended December 31, 2012, its customers included Chevron Corporation, BP America Production Co. (together with its affiliates), and Petrobras. Additionally, the company entered into 10-year drilling contracts with Royal Dutch Shell plc for 4 newbuild ultra-deepwater drillships. History Transocean Ltd., a Swiss corporation, was founded in 1953.