Shell's $8B Transocean Deal Reveals Growing Rig Squeeze

Law360, New York (October 1, 2012, 8:49 PM EDT) -- Royal Dutch Shell PLC agreed Friday to pay a record $7.6 billion to lease four ultra-deepwater drillships from Transocean Ltd. for 10 years, reflecting an industry push lock down access to rigs as availability tightens and daily rates rise, driven mostly by heavy demand in the Gulf of Mexico and Africa.

Each of the drillships will be able to operate in water depths of up to 12,000 feet, which would let Shell tap the world's deepest canyons. They will cost $750 million each — on par...
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