Houston-based Transocean just announced plans to scrap 4 of its rigs, specifically the Deepwater ExpeditionTransocean Legend, Transocean Rather and GSF Arctic III.

Until very recently, all 4 had been designated as “held for sale.”

The move is expected to cost the company $300 million to $325 million in non-cash charges, net of taxes, during the first quarter of 2015, according to a statement issued yesterday.

The company also announced plans to scrap 12 other floaters in addition to the 4 rigs already named.

This announcement comes just a few months after Transocean’s December 14th statement which divulged plans to scrap 7 other rigs, the Sedco 710, Sovereign Explorer, Sedco 700, Sedco 601, J.W. McLean, GSF Arctic I, and Falcon 100 costing the company $100 million to $140 million in non-cash charges, net of taxes.

As oil prices remain low, and probably will for the foreseeable future, more and more companies will be taking extreme cost cutting measures like Transocean in order to make sure they are still around and able to do business when prices finally start to go back up.

In the meantime, that will undoubtedly leave many offshore workers without a means of earning the money they need to support their families.

Only time will tell whether or not this worrying trend will continue.


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