Transocean Proxy Statement and 2010 Annual Report

Performance and Other Key Indicators
Contract backlog—The following table presents our contract backlog, including firm commitments only, for our contract drilling
services segment as of February 10, 2011, October 14, 2010 and December 31, 2009. Firm commitments are represented by signed
drilling contracts or, in some cases, by other definitive agreements awaiting contract execution. Our contract backlog is calculated by
multiplying the full contractual operating dayrate by the number of days remaining in the firm contract period, excluding revenues for
mobilization, demobilization and contract preparation or other incentive provisions, which are not expected to be significant to our contract
drilling revenues. The contractual operating dayrate may be higher than the actual dayrate we receive or we may receive other dayrates
included in the contract, such as a waiting-on-weather rate, repair rate, standby rate or force majeure rate. The contractual operating
dayrate may also be higher than the actual dayrate we receive because of a number of factors, including rig downtime or suspension of
operations. In certain contracts, the dayrate may be reduced to zero if, for example, repairs extend beyond a stated period of time.
AR-42
February 10,
2011
October 14,
2010
December 31,
2009
Contract backlog (in millions)
High-Specification Floaters $ 20,956 $ 22,107 $ 25,704
Midwater Floaters 1,912 2,320 3,412
High-Specification Jackups 129 335 374
Standard Jackups 936 1,251 1,601
Other Rigs 47 55 80
Total $ 23,980 $ 26,068 $ 31,171
We have 12 rigs under contract and operating in the U.S. Gulf of Mexico. The backlog associated with the contracts relating to
these rigs was $6.6 billion as of February 10, 2011, of which $2.2 billion could be lost if our customers are legally permitted to and choose
to exercise their termination rights under certain contracts.
Although Deepwater Horizon was operating under a contract, which was to extend through September 2013, the total loss of the
rig resulted in an automatic termination of the agreement. At the time of the Macondo well incident, the backlog associated with the
Deepwater Horizon drilling contract was approximately $590 million.
The firm commitments that comprise the contract backlog for our contract drilling services segment are presented in the following
table along with the associated average contractual dayrates measured at February 10, 2010. The actual amounts of revenues earned
and the actual periods during which revenues are earned will differ from the amounts and periods shown in the tables below due to various
factors, including shipyard and maintenance projects, unplanned downtime and other factors that result in lower applicable dayrates than
the full contractual operating dayrate. Additional factors that could affect the amount and timing of actual revenue to be recognized and
timing include customer liquidity issues and contract terminations, which are available to our customers under certain circumstances. The
contract backlog average contractual dayrate is defined as the contracted operating dayrate to be earned per revenue earning day in the
period. A revenue earning day is defined as a day for which a rig earns a dayrate during the firm contract period after commencement of
operations.
For the years ending December 31
Total 2011 2012 2013 2014 Thereafter
Contract backlog (In millions, except average dayrates)
High-Specification Floaters $ 20,956 $ 5,710 $ 5,660 $ 4,511 $ 2,503 $ 2,572
Midwater Floaters 1,912 949 545 170 98 150
High-Specification Jackups 129 104 25 — — —
Standard Jackups 936 536 241 112 38 9
Other Rigs 47 23 24 — — —
Total contract backlog $ 23,980 $ 7,322 $ 6,495 $ 4,793 $ 2,639 $ 2,731
Average contractual dayrates Total 2011 2012 2013 2014 Thereafter
High-Specification Floaters $ 466,000 $ 471,000 $ 472,000 $ 476,000 $ 466,000 $ 429,000
Midwater Floaters 318,000 325,000 342,000 294,000 268,000 268,000
High-Specification Jackups 103,000 103,000 100,000 — — —
Standard Jackups 97,000 107,000 89,000 82,000 81,000 78,000
Other Rigs 72,000 72,000 72,000 — — —
Total fleet average $ 383,000 $ 342,000 $ 385,000 $ 420,000 $ 425,000 $ 410,000