The offshore oil and gas sector is as profitable as it has been in a considerable amount of time as activity ramps up worldwide, according to Transocean chief executive Jeremy Thigpen.

Transocean’s second quarter earnings call came as the company announced a pair of new contract awards for ultra-deepwater drillships with a combined value of approximately $1.2 billion.

Thigpen said current commodity prices have been volatile, but remained in a range that is “extremely healthy” for offshore oil and gas development.