Owner of Exploded Rig Exploits Offshore Status

Transocean is the world’s largest offshore drilling company, but until its Deepwater Horizon rig exploded in the Gulf of Mexico in April, few Americans outside the energy business had heard of it. It is well known, however, in a number of other countries — for testing local laws and regulations.

Human rights advocates have called for an investigation into Transocean’s recent dealings in Myanmar. They cite its involvement in a drilling project that apparently included a company that is suspected of having ties to two men accused of laundering money for Myanmar’s repressive government, which is under United States trade sanctions.

Transocean has disclosed in Securities and Exchange Commission filings that its drilling equipment was shipped by a forwarder through Iran and that until last year it held a stake in a company that did business in Syria. The State Department says Syria and Iran sponsor terrorism.

In Norway, Transocean is the subject of a criminal investigation into possible tax fraud. The company has said in S.E.C. filings that Norwegian officials could assess it about $840 million in taxes and penalties. The filings also said that a final ruling against Transocean could have a “material impact” on the company, which has suffered a drop in its stock price of more than 40 percent since the Gulf of Mexico incident.

And in the United States, a federal bankruptcy judge recently found that one of Transocean’s merger partners had repeatedly abused the legal system to try to avoid potential liability in a pollution case in Louisiana. Transocean is also the target of tax inquiries in the United States and Brazil.

Transocean declined though an outside spokesman to make company officials available for comment. The company said in a statement that it had always acted appropriately and believed that it would prevail in any investigations.

It is not unusual for large multinational companies like Transocean to find themselves in legal or tax controversies around the world and Transocean has noted the issues that face it in public filings. The company’s most significant safety problem overseas involved a 2007 episode in which eight people died off the coast of Scotland when a support vessel capsized while towing a huge chain used to position a Transocean rig. A Norwegian board of inquiry found that missteps by several parties, including Transocean and the support vessel’s owner, had contributed to the incident.

But the company’s practices in the United States and abroad have come under new scrutiny since the oil spill in the gulf. Last week, the chairman of the Senate Finance Committee, Max Baucus, Democrat of Montana, said that the panel would investigate whether Transocean had used its corporate base in Switzerland to exploit United States tax laws.

In its dealings with lawmakers, Transocean has stood its ground. Last month, in response to a demand that Transocean delay a planned distribution to shareholders of $1 billion in dividends, the company declared that paying the dividend “in no way affects Transocean’s ability to meet it legal obligations.”

Transocean has largely blamed BP, the well’s operator, for the spill, describing it as a company that took shortcuts on safety. Transocean has had a long relationship with BP, and for the last two years, BP has been Transocean’s largest single customer, accounting for 12 percent of its $11.5 billion in operating revenue in 2009, public filings show.

Industry analysts said that strong ties between the companies reflected the fact that both had staked their financial futures on pushing oil exploration as far off shore as possible. Transocean, which drills in some 30 countries and employs more than 18,000 people, owns nearly half of the 50 or so deepwater platforms in the world.

“These people are capable and considered the gold standard of deepwater drilling,” said Peter Vig, managing director at RoundRock Capital Management, an energy hedge fund in Dallas.

Transocean’s evolution into the world’s biggest deep-sea driller follows a decade-long acquisition and merger spree.

It began in 1996 when a Texas-based company called Sonat OffshoreDrilling acquired Transocean ASA, then Norway’s largest offshore driller. Three years later, the company, now known as Transocean, shifted its headquarters for tax purposes to the Cayman Islands from Houston, though a vast majority of its executives still work in Houston,. In subsequent years, it acquired or merged with other drillers including R&B Falcon, the drilling unit of Schlumberger and GlobalSantaFe. Then, in 2008, for tax purposes, it moved its headquarters again, this time to Switzerland from the Cayman Islands.