Atwood Oceanics, Inc. ATW (the "Company") announced today that one of
its subsidiaries has entered into a turnkey construction contract with Daewoo
Shipbuilding and Marine Engineering Co., Ltd. ("DSME") to construct a fourth
ultra-deepwater drillship, to be named the Atwood Archer, at the DSME yard in
South Korea. The Atwood Archer is expected to be delivered by December 31,
2015 at a total cost, including two blowout preventers ("BOPs"), project
management, drilling and handling tools and spares, of approximately $635
million. Upon delivery, the Atwood Archer will become the seventeenth mobile
offshore drilling unit owned by the Company.
The design of the Atwood Archer will be identical to the previously ordered
Atwood Advantage,Atwood Achiever and Atwood Admiral - all four drillships are
DP-3 dynamically-positioned, dual derrick ultra-deepwater drillships rated to
operate in water depths up to 12,000 feet and drill to a depth of up to 40,000
feet.
This order comprises the execution of the option that was set to expire on
June 30, 2013. In connection with the exercise, the Company has also secured
an option to construct a fifth ultra-deepwater drillship at a similar cost to
the Atwood Archer and with an expected delivery in September 2016, and which
requires exercise by March 31, 2014. At this time, the Company has made no
determination as to whether the option will be exercised.
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