AWLCF - Transocean Gives Up On Two Former Ocean Rig Newbuilds

Note:

I have covered Transocean (NYSE:RIG) previously, so investors should view this as an update to my earlier articles on the company.

Transocean management never fails to surprise investors as evidenced again by Monday's decision to give up on two 7th generation drillship newbuilds inherited through last year's acquisition of Ocean Rig.

Upon delivery, both Ocean Rig Santorini and Ocean Rig Crete would be among the world's highest-specification drillships, so why is Transocean heading for the exit here?

The answer seems quite easy:

The eagerly awaited recovery of the ultra-deepwater segment has