Transocean Ltd. (NYSE: RIG) announced an agreement with Equinor for the use of three harsh environment semisubmersible rigs on the Norwegian shelf, according to a company press release. The deal is valued at over $1 billion in contract backlog across seven rig years, excluding additional services.

The base day rate is $399,000 per day, with adjustment provisions expected to bring the effective day rate above $400,000 per day at commencement. The agreement is conditional on license approvals.

The three rigs involved are all "Cat D" class vessels, originally purpose-built for Equinor and designed for Norwegian winter conditions. The Transocean Enabler is contracted for a three-year program expected to begin in the first quarter of 2028, continuing directly from its current program. The Transocean Encourage is set for a two-year program also starting in the first quarter of 2028. The Transocean Endurance will begin a two-year program in the second quarter of 2027, following its mobilization back to Norway from Australia.

Chief Executive Officer Keelan Adamson said the seven-rig-year agreement "demonstrates the strength and resilience of Norway's high-specification harsh environment market and our strong relationship with Equinor."

Transocean operates a fleet of 27 mobile offshore drilling units, comprising 20 ultra-deepwater floaters and seven harsh environment floaters.