Atwood and DSME agree drillship delivery delays

Atwood Admiral Atwood Admiral

DECEMBER 21, 2015 — Atwood Oceanics, Inc. (NYSE: ATW) said today that subsidiaries of the company have agreed with Daewoo Shipbuilding & Marine Engineering Co. (DSME) to delay delivery of two newbuild ultra-deepwater drillships, the Atwood Admiral and the Atwood Archer, to September 30, 2017 and June 30, 2018, respectively.

Atwood Admiral had previously been scheduled for delivery from the shipyard this year and Atwood Archer for delivery in 2016.

Atwood Oceanics will make payments of $50 million for each drillship on December 31, 2015, and DSME will extend all remaining milestone payments, $93.9 million for the Admiral and $305 million for the Archer, until their respective delivery dates.

Atwood retains the option to take earlier delivery of each vessel, subject to 45-day notice period to DSME.

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