Under the terms of the extension amendment, Shell has the right to elect by June 30, 2008, to extend the contract by an additional year, to a total of four years.
Estimated contract revenues that could be generated over the three-year or four-year extension periods are approximately $586 million or $759 million, respectively.
Transocean noted that the estimated contract revenues represent the maximum amount of revenues that may be earned in the applicable contract period, excluding revenues for mobilization, demobilization and cost escalations.
The Deepwater Nautilus is one of the 39 high-specification floaters in Transocean’s fleet. The rig, which entered service in 2000, is reportedly capable of operating in water depths of up to 8,000 feet, or greater if a pre-set mooring system is used.
