Atwood Oceanics orders $600 million drillship at DSME

Houston based Atwood Oceanics, Inc.(NYSE: ATW) reports that its Atwood Oceanics Pacific Limited subsidiary has executed a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd. to construct an ultra-deepwater drillship.

To be named the Atwood Advantage, the drillship is expected to be delivered from DSME’s Okpo, Korea, shipyard by September 30, 2013. Total cost, including project management, drilling and handling tools and spares, will be approximately $600 million. Financing for construction is expected to be provided from a combination of ongoing cash flows and debt, as necessary, and from AOPL’s current senior credit facilities. The company will consider whether any additional debt may be necessary.

The Atwood Advantage will be a DP-3 dynamically-positioned, dual derrick ultra-deepwater drillship rated to operate in water depths up to 12,000 feet and to drill to a depth of 40,000 feet. 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 contract includes options to construct one or two additional ultra-deepwater drillships which require commitment by Atwood within nine months after contract execution.

Rob Saltiel, President and CEO, commented, “We are excited to announce the construction of the Atwood Advantage drillship as the next expansion of our ultra-deepwater rig fleet. This drillship will offer unparalleled capability, efficiency and operations integrity to Atwood’s clients through incorporation of state-of-the-art technologies into a proven rig design. We have chosen DSME shipyard as our partner for this strategic project based on their quality reputation and extensive experience in building next-generation drillships.”

January 31, 2011