Arctic Oil Ambitions: Exxon Eyes $1 Bln Transocean Rig

ExxonMobil could be ramping up its Arctic exploration intentions with reported plans to commission a rig able to withstand the brutal and ice-covered regions such as offshore Greenland and Alaska. The biggest U.S. oil company is looking to sign a contract for a Transocean rig capable of drilling in Arctic waters and which is estimated to cost up to $1 billion to build, Reuters reported.

Transocean CEO Bob Long said in September his company could announce a new arctic-class rig with a contract by the end of 2009. The announcement has yet to occur, but some have speculated Exxon was tied up with its acquisition of independent unconventional natural gas producer XTO Energy.

Exxon has long been interested in the Arctic and has an increased its acreage in the Beaufort Sea and is in different stages of planning and assessment in areas offshore West Greenland, eastern Canada and Newfoundland.

Bnet