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March 19, 2015

Transocean plans to scrap four offshore drilling rigs

Transocean intends to scrap four offshore drilling rigs, which is expected to cost the Switzerland firm anywhere between $300m and $325m in non-cash charges during the first quarter.

Transocean intends to dismantle four offshore drilling rigs, expected to cost the Switzerland firm anywhere between $300m and $325m in non-cash charges during the first quarter.

The four rigs will be sold as scrap, and according to the company, the dismantling of the rigs will be done in an environmentally responsible way.

"With the latest plan, the company intends to dismantle and sell 16 rigs as scrap."

It has stacked four other deep-water vessels that have been kept idle, reported Houston Business Journal. With the latest plan, the company intends to dismantle and sell 16 rigs as scrap. The announcement comes almost a month after Transocean said that it plans to retire seven of its rigs.

The company also plans to keep around 60% of its deepwater units idle this year, according to Fuel Fix. It presently owns or has interest in nearly 70 offshore rigs.

Last month, Transocean president and CEO Steven Newman stepped down from his role, and the company is still looking for a replacement.

In January 2013, Transocean agreed to plead guilty for violating the Clean Water Act, and to pay $1.4bn in fines and recoveries with regard to the 2010 Deepwater Horizon disaster.

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Transocean provides offshore contract drilling services for oil and gas wells.

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