NEW YORK (TheStreet) -- Shares of Transocean (RIG) are down 1.76% to $25.40 after the company's November fleet status report announced that the Deepwater Discovery, the Sedco Express and the GSF Arctic III rigs are now idle.
"We had been modeling that the Deepwater Discovery would see a 60-day gap in between contracts in West Africa but now that Transocean has removed the rig's scheduled survey from its 2015 guidance we are forecasting that the rig will be off rate for the entire first half of 2015," Cowen Group analysts said.
"Similarly with the Sedco Express we were calling for the rig to work half of 4Q14 with Eni SpA (E) in Nigeria before rolling onto a new contract at roughly $350 k/d. We now expect the rig will likely be idle for the first half of 2015 given that Transocean has removed plans for the rig's 5-year survey," analysts wrote.
The GSF Arctic III, which had been working in the U.K. North Sea is now idle as well, and analysts expect the rig will be "cold stacked" at the end of the year.
Oil's decline to a four-year low in recent months has caused companies to consider spending cuts, which would further reduce demand for rigs and the rates Transocean can charge to lease them to explorers, according to Bloomberg.