v2.4.0.8
Drilling Fleet
 6 Months Ended
Jun. 30, 2013
Drilling Fleet  
Drilling Fleet
Note 9—Drilling Fleet
 
Construction work in progress—Capital expenditures and other capital additions, including capitalized interest, for the six months ended June 30, 2013 and 2012 were as follows (in millions):
 
   
Six months ended June 30,
  
   
2013
      
2012
  
Construction work in progress, at beginning of period
  
$
1,972
    
$
1,360
  
                 
Newbuild construction program
                
Ultra-Deepwater Floater TBN1 (a)
    
84
      
—
  
Ultra-Deepwater Floater TBN2 (a)
    
82
      
—
  
Ultra-Deepwater Floater TBN3 (a)
    
4
      
—
  
Ultra-Deepwater Floater TBN4 (a)
    
3
      
—
  
Transocean Ao Thai (b)
    
13
      
45
  
Deepwater Asgard (c)
    
24
      
21
  
Deepwater Invictus (c)
    
25
      
13
  
Transocean Siam Driller (d) (e)
    
74
      
26
  
Transocean Andaman (d) (e)
    
82
      
26
  
Transocean Honor (e) (f)
    
—
      
35
  
Other construction projects and capital additions
    
449
      
279
  
Total capital expenditures
    
840
      
445
  
Changes in accrued capital expenditures
    
(29
)
    
18
  
                 
Property and equipment placed into service
                
Transocean Andaman (d)
    
(242
)
    
—
  
Transocean Siam Driller (d)
    
(236
)
    
—
  
Transocean Honor (f)
    
—
      
(262
)
Other property and equipment
    
(502
)
    
(304
)
Construction work in progress, at end of period
  
$
1,803
    
$
1,257
  
_____________________________
(a)
Our four newbuild Ultra-Deepwater drillships, under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the fourth quarter of 2015, the second quarter of 2016, the fourth quarter of 2016 and the first quarter of 2017.
 
(b)
Transocean Ao Thai, a Keppel FELS Super B class design High-Specification Jackup under construction at Keppel FELS’ yard in Singapore, is expected to commence operations in the fourth quarter of 2013.
 
(c)
Deepwater Asgard and Deepwater Invictus, two Ultra-Deepwater drillships under construction at the Daewoo Shipbuilding & Marine Engineering Co. Ltd. shipyard in Korea, are expected to commence operations in the first quarter of 2014 and third quarter of 2014, respectively.
 
(d)
Transocean Siam Driller and Transocean Andaman, two Keppel FELS Super B class design High-Specification Jackups, commenced operations in March 2013 and May 2013, respectively.
 
(e)
The accumulated construction costs of this rig are no longer included in construction work in progress, as the construction project had been completed as of June 30, 2013.
 
(f)
Transocean Honor, a PPL Pacific Class 400 design High-Specification Jackup, owned through our 70 percent interest in TDSOI, commenced operations in May 2012.  The costs presented above represent 100 percent of TDSOI’s expenditures in the construction of Transocean Honor.
 

 
Dispositions—In June 2013, in connection with our efforts to dispose of non-strategic assets, we committed to plans to sell the Deepwater Floater Sedco 709 and the Midwater Floaters C. Kirk Rhein, Jr. and Sedco 703 along with related equipment.  At June 30, 2013, these drilling units and related equipment were classified as assets held for sale with an aggregate carrying amount of $9 million.  See Note 5—Impairments.