Atwood exercises drillship contract with Daewoo

Houston-headquartered Atwood Oceanics, Inc. says that on October 15, 2011, wholly-owned subsidiary Alpha Eagle Company entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd.,  to construct an ultra-deepwater drillship, to be named the Atwood Achiever, at the DSME shipyard in South Korea.

This order exercises the first option of two options under Atwood’s January 2011 contract contract with DSME. Atwood says it has secured modifications to the one remaining priced option under that contract, which requires commitment by July 31, 2012, but says it has made no determination at this time on whether that option will be exercised.

The Atwood Achiever will be identical to the previously ordered Atwood Advantage and will be a DP-3 dynamically-positioned, dual derrick ultra deepwater drillship rated to operate in water depths up to 12,000 feet and drill to a depth of 40,000 feet. The Atwood Achiever will also have enhanced technical capabilities, including a 7-ram blowout preventer, three 100 ton knuckle boom cranes, a 165 ton active heave “tree-running” knuckle boom crane,  and 200 person accommodations.

The Atwood Achiever is expected to be delivered by June 30, 2014 at a total cost, including project management, drilling and handling tools and spares, of approximately $600 million.  Financing for the construction of the Atwood Achiever is expected to be provided from a combination of available cash, cash flows from operations and borrowings, as necessary, from the current senior credit facility of wholly-owned subsidiary Atwood Offshore Worldwide Limited.

On delivery, the Atwood Achiever will become the sixteenth mobile offshore drilling unit owned by the company.

Rob Saltiel, President and CEO, commented, “We are pleased to execute our option with the DSME shipyard to build the Atwood Achiever and to expand further our high-specification, ultra-deepwater drilling fleet.  This rig’s state-of-the-art design, coupled with the benefits of identical outfitting to the Atwood Advantage, make it a compelling investment for Atwood Oceanics.”

October 18, 2011