Transocean gets 5-year drilling contract

The contract is expected to begin during the fourth quarter of 2010, following shipyard construction, sea trials, mobilization and customer acceptance, Transocean said.

The term of the contract also may be extended to seven or 10 years by the client, Transocean said.

Transocean estimated contract revenue that could be generated over the five-year, seven-year and 10-year contract terms at about $1.01 billion, $1.35 billion, and $1.85 billion, respectively.

Transocean shares rose $3.01, or 2 percent, to $156.88.