Diamond Offshore orders semi at Jurong Shipyard

Diamond Offshore semiAUGUST 15, 2012 — Diamond Offshore Drilling, Inc. (NYSE:DO) has entered into a contract with Sembcorp Marine's Jurong Shipyard in Singapore to build a moored semisubmersible rig, to be named the Ocean Apex, with delivery scheduled for the second quarter of 2014. Total cost for the project is expected to be approximately $370 million, including commissioning, spares and project management, but excluding capitalized interest.

The contract with Jurong is worth $135 million to the shipbuilder.

"We will construct the Ocean Apex utilizing an existing hull from a Diamond Offshore cold stacked unit," said Larry Dickerson, President and CEO of Diamond Offshore. "Upon delivery, we will have a rig that exceeds the specifications of a fourth-generation newbuild unit; however, it will have been constructed in approximately half the time and for a significantly lower cost. This addition to our fleet is consistent with Diamond Offshore's long-term strategy of enhancing our fleet at attractive capital costs."

The Ocean Apex, will be capable of operations in water depths up to 6,000 feet. Design specifications also include a variable deck load of 7,000 long tons, a maximum hook-load capacity of two million pounds, a 15K five-ram blowout preventer, crew quarters capacity for 140 personnel, and a deck area among the largest of any semisubmersible rig in the world.

"We continue to see significant opportunities for moored deepwater units, as evidenced by the contract recently awarded to the Ocean Onyx, our other deepwater semisubmersible currently under construction," said Mr. Dickerson, President and Chief Executive Officer of Diamond Offshore. "This project marks the continuation of Diamond's ongoing fleet renewal program, which includes four ultra-deepwater drillships and now two deepwater semis currently on order."

Mr. Wong Weng Sun, President and CEO of Sembcorp Marine said "We are happy that Diamond Offshore has chosen to partner with Jurong Shipyard in their fleet enhancement programme. We are heartened by their trust and confidence in our capabilities and will continue to build on this strong partnership and synergy going forward."

Mr. John Vecchio, EVP of Diamond Offshore said "We are pleased to have entered into this agreement with Jurong Shipyard to enhance our deep water rig fleet with this high profile project. We are excited about our new project and look forward to working with Jurong Shipyard for an on time delivery of the Apex."

Want more? Subscribe now!

News from NASDAQ