Another setback for Transocean

ZUG, Switzerland, April 20 (UPI) -- Rig company Transocean said it was delaying the delivery of two ultra-deepwater drillships to 2020 in an agreement with a shipyard company in Singapore.

Transocean said it reached an agreement with a Jurong Shipyward to defer delivery and payments for two offshore drillships.

"The proprietary Jurong Espadon 3T designed rigs are now scheduled to be delivered during the first and third quarter of 2020," Transocean said in a statement.

Transocean provided none of the original terms of the agreement, including cost or delivery date. There was no statement offered by its customer in Singapore.

Transocean in March deferred the build of five new rigs until the first quarter of 2020 following a mutual agreement with rig builder Keppel Offshore & Marine, which secured a $1.1 billion contract from Transocean in 2013.

The company in February had two rig contracts canceled early. Since 2015, it had a total of 11 contracts pulled prematurely as energy companies spend less on exploration and production during the market downturn.

In a recent filing with the Securities and Exchange Commission, the company said it expected "very few" new drilling contracts for 2016.

Crude oil prices are off more than 60 percent from their peak levels above $100 per barrel in mid-2014, leaving energy companies with less capital to invest in exploration and production. With oil trading lower, Transocean said the market does not support sustained demand for drilling rigs.

The rig company issues its quarterly results May 4.