UPDATE: Transocean Agrees To Cut Rate For Shell, BHP In US Gulf

(Updates with additional information on rig fleet status and force majeure declarations.) HOUSTON (Dow Jones)--Transocean Ltd. (RIG) has agreed to cut its day rate for two oil and gas companies in the U.S. Gulf of Mexico while a government-mandated moratorium on deepwater drilling is in place, even as it received notifications of force majeure from two other clients, the company said Thursday. Both Royal Dutch Shell PLC (RDSA) and BHP Billiton Ltd. (BHP) will pay a "special standby rate that is lower than the regular contract day rate" in the Gulf as a result of the drilling moratorium, according to Transocean's monthly fleet update. Under the terms of those agreements, both companies have agreed to extend their contracts by one day for each day that they are prevented from working in the Gulf. Neither will be able to declare "force majeure," a clause that under extreme circumstances absolves companies from fulfilling their contractual obligations. These latest steps by oil and gas companies to negotiate new agreements in the U.S. Gulf underscore the uncertainty surrounding offshore drilling in federal waters in the wake of the BP PLC (BP) oil spill. A deadly explosion aboard a Transocean rig, the Deepwater Horizon, and the resulting oil spill, have triggered a moratorium on drilling until Nov. 30 and have stymied offshore activity. If BHP is unable to obtain a drilling permit after Nov. 30, the day the federally mandated drilling ban expires, it can either continue paying the special rate or terminate the contract. Shell and BHP will resume paying their normal rates once operations resume. Shell will revert back to the full terms of its contract after Nov. 29. Transocean has received force-majeure declarations from Eni SpA (E) on two floating deepwater rigs in the Gulf. Chevron Corp. (CVX) has declared force majeure on three Transocean drillships--two are on a short-term loan to BP and assisting with the oil spill response effort. In both instances, Transocean has maintained that force majeure doesn't exist and that the rigs can proceed with other work in the Gulf such as well maintenance. -By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com (END) Dow Jones Newswires July 15, 2010 18:50 ET (22:50 GMT)