Transocean (NYSE:RIG): Current price $57.49
Transocean’s subsidiary has awarded contracts to Oceaneering International (NYSE:OII) through which for it to supply three subsea blowout preventer control systems. These contracts will contribute more than $40 million to Oceaneering’s Subsea Products backlog. The discrete hydraulic systems will be employed on existing semi-submersible drilling rigs that Transocean is modifying in compliance with the American Petroleum Institute’s recently issued standard API 53, a rule which mandates subsea BOPs with a single shear ram are to be upgraded or replaced. These systems will be made at the Oceaneering Intervention Engineering facility in Houston with deliveries expected in the fourth quarter of 2013 and the first quarter of 2014.