JUNE 25, 2013 — Atwood Oceanics, Inc. (NYSE:ATW) reports that a subsidiary has entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd. to construct a fourth ultra-deepwater drillship, to be named the Atwood Archer, at the DSME shipyard 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.
An announcement by the shipbuilder valued its contract at $565 million.
On delivery, the Atwood Archer will become Atwood's seventeenth MODU.
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.
The order exercised an option that was set to expire June 30. Atwood has 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, it says, it has made no determination as to whether the option will be exercised.