Concurrent with Transocean Ltd's. divestiture of 38 low-specification rigs in the fourth quarter of 2012, the company commenced an organizational efficiency initiative. This initiative is intended to align the company's shore-based support infrastructure with the post-divestiture size, composition and geographic location of its fleet and represents an initial phase in the company's ongoing plan to improve operating margins. This restructuring is expected to result in a more efficient and focused organization that delivers the highest level of support to the company's rig operations without compromising safety or operational integrity.

Based on preliminary analysis, the company currently anticipates achieving annualized savings associated with this initial phase of our cost reduction initiative of approximately $300 million. Onshore support costs are reported principally in operating and maintenance expense and, to a lesser extent, as general and administrative expense on the company's statement of operations.

Tags: Transocean Ltd.