RIG
#We are seeing increasing interest in activity.
I think the interest has always been there since it's such a prolific basin.
So our customers are actively engaged with Petrobras, looking at their opportunities.
We know there's a lot of interest from, certainly, the majors and the independents.
We expect that there will be more opportunities for them in the future.
How quickly that will translate into more rig activity, it's difficult to say because the independents, the majors already have some form of portfolio there.
So as soon as we see some significant stability, not significant, but some stability in the oil price, I think that we'll start seeing some activity within the next 18 to 24 months.
It's difficult to say at this point in time.
My guess is, the answer is no, that we may not, at least for a couple.
It is going to be based on the customer, it is going to be based on the application and what we see as the future for that particular rig and with that particular customer.
I will say that we're also currently exploring the possibility of looking at some of the rigs we've cold stacked, or at least one, and kind of seeing if there is a hybrid over time where maybe we can get that rig ready to go but now is not the time.
We're going to have to see some improvement in the marketplace first and then kind of pursue how can we get some of these cold stacked rigs back and running even more quickly and cost effectively than we have historically.
But again, we need to see some light on the horizon before entering into such a process.
Yes.
Thanks.
There's not.
<UNK>, let me take a shot at that.
I think the way to look at this that we have to beat the competing rigs on a daily basis therefore to win the work.
But as <UNK> mentioned previously, we're not willing [rent] the rigs at below cash breakeven.
So we look at making sure we cover our cash costs, firstly, and then our up side in some cases where it is beneficial to us and to the customer to drill the well in that time period, we will take our up side in the form of performance bonuses.
Bear in mind, we have a database of wells which we've drilled around the world which is extensive.
It is by far the biggest in the industry, in fact probably bigger than anybody they else put together.
So we have this information available to us which we can extrapolate in order to make sure that we minimize our risk when taking these performance bonus opportunities.
Bear in mind, <UNK>, if you go back over time the transaction was involved in a significant event, the Macondo event.
So there is a lot of uncertainty is and risk around that.
So at that time, too much cash was not a concept which you had at Transocean.
You wanted as much as possible.
So coming out of that the Company was focused on having a much bigger cash balance.
Obviously also operate a much bigger fleet.
As you are well aware now, our number of operating rigs are coming down dramatically.
So as a result, the amount of cash we need to support that comes down dramatically as well.
So I'm very comfortable in saying in the 2018 time frame, even in the 2017 time frame, we'll be able to drop cash balances down to the mid, call it the $500 million area, and perhaps lower than that.
I would try to indicate that the whole $1.5 billion cash is no longer a goal of Transocean.
Oh, it's not much at all.
I can get you the exact number but I don't think it's much at all.
Certainly well less than $10 million.
Thank you.
Yes, I would like to thank everyone for your participation and questions today on our call.
If you have any further questions, please feel free to contact me.
We will look forward to talking to you again when we report our third quarter 2016 results.
Have a good day.
