Transocean Expands Exploration Portfolio with Ocean Minerals

Shares of Transocean Ltd. (NYSE: RIG) gained 3.2% at the time of writing after the company disclosed that it purchased a minority interest in Ocean Minerals Ltd.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells, while Ocean Minerals engages in the exploration of seabed resources containing metals required in the renewable energy market.

The companies are working together to provide the technology and services required to collect nodules from the seabed upon receipt of a production license.

Last month, Moana Minerals, an affiliate of Ocean Minerals, bagged a license from the Cook Islands Seabed Minerals Authority for the exploration of polymetallic nodules. Minerals like cobalt, nickel, copper, manganese, and rare earth metals found in the nodules are critical for the production of high-capacity batteries.

The CEO of Transocean, Jeremy Thigpen, said, “We are excited to work alongside Ocean Minerals to help support efforts to achieve a lower carbon energy economy and meet the growing global demand for critical minerals. A mixture of all energy sources will be required to meet future global energy demands, and our work with Ocean Minerals is another way for Transocean to continue to provide essential offshore energy services.”

Stock Rating

Earlier in March, Evercore ISI analyst James West maintained a Buy rating on Transocean with a price target of $6, implying 28.5% upside potential from current levels.

Based on one Buy, three Holds and one Sell, the stock has a Hold consensus rating. Transocean’s average price target of $4.52 implies 3.2% downside potential from current levels. Shares have gained 49.7% so far this year.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Transocean, as 18.2% of investors increased their exposure to RIG stock over the past 30 days.

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