January 3, 2008
Atwood Oceanics orders semi at Jurong
Houston-based Atwood Oceanics, Inc. (NYSE: ATW) announced today that its wholly owned subsidiary, Atwood Oceanics Pacific Limited ("AOPL"), has been awarded a contract by Chevron Australia Pty. Ltd. to provide a newly constructed mobile offshore semisubmersible drilling unit for a firm three year period. The contract includes an option to extend the firm period to six years that must be exercised within seven days of delivery of the rig from the shipyard.
The contract provides for an operating dayrate of approximately $470,000, if the firm commitment is three years and approximately $450,000, if the option is exercised to extend the firm commitment period to six years. Both dayrates are subject to adjustment in line with cost escalation provisions of the contract.
To provide the drilling rig required, Atwood Oceanics Pacific has executed a construction contract with SembCorp Marine's Jurong Shipyard Pte. Ltd. for a Friede & Goldman ExD Millennium Semisubmersible Drilling Unit.
The new rig will be constructed at Jurong's shipyard in Singapore, with delivery expected in early 2011.
AOPL estimates the total cost of the rig (including administrative and overhead costs and capitalized interest) will be $570 million to $590 million.
Financing for the rig construction will be provided from a combination of ongoing cash flow of AOPL and debt, as necessary, from a US$300,000,000 Credit Agreement that AOPL recently arranged with several banks.
According to SembCorp Marine, the shipyard contract value for the unit is US$280.5 million which does not include owner furnished equipment and other owner-related costs.
The new rig will be able to conventionally moor in up to 6,000 feet of water with its own mooring equipment and with pre-laid mooring equipment could work in up to 8,000 feet of water.
This rig will become the tenth Atwood Oceanics owned mobile offshore drilling unit.
Atwood has an option for a second rig with Jurong that must be exercised prior to June 30, 2008. Atwood says no determination has been made at this time as to whether the option will be exercised.
John R. Irwin, President and Chief Executive Officer of Atwood Oceanics, Inc. said "We are pleased to be working with Jurong Shipyard based on their past track record and experience. We are also pleased to further build on our relationship with Jurong and look forward to this contract being mutually beneficial to both companies."
Mr Don Lee, Senior General Manager of SembCorp Marine's Offshore Division said "We are pleased with the confidence that Atwood Oceanics has placed with us in ordering the first new semi-submersible rig unit with Jurong Shipyard. This reinforces our relationship with Atwood Oceanics as we have been repairing and upgrading their rig fleet since the early '80s. This will be the seventh newbuild deepwater semisubmersible rig that Jurong Shipyard will be building based on the Friede & Goldman ExD design. The fact that five of these units have secured chartered contracts with reputable and established oil companies is also an excellent testament of the rig's capabilities."