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TransOcean GSF Jack RyanDeep sea driller Transocean $RIG announced Friday that it retire six ultra-deepwater floaters and that as a result they will recognize an impairment charge of $1.4 billion in the third quarter of 2017. This follows news Transocean received a notice of early termination from a subsidiary of $CVX for the ultra-deepwater drillship, Discover Clear Leader, effective Nov. 2017.$RIG Is up near 2% on the news.

The rigs will be classified as held for sale and recycled in an environmentally responsible manner. All six rigs were previously cold stacked..

Reactionransocean Ltd NYSE: RIG Sep 22, 10:03 AM EDT 9.24 +0.18 (+1.93%)

Rigs Retired

  1. GSF Jack Ryan (pictured)
  2. Sedco Energy
  3. Sedco Express
  4. Cajun Express
  5. Deepwater Pathfinder
  6. Transocean Marianas

“We continue to enhance the quality of our fleet through the addition of new, high-specification assets, and the retirement of older, less competitive rigs,” said Jeremy Thigpen, President and Chief Executive Officer. “We remain committed to providing our customers with the most technically capable and highest quality ultra-deepwater and harsh environment assets in the industry, and will continue to objectively evaluate our rigs and high-grade our fleet as the market evolves.”

Source: Transocean

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