0:05 | 03.02.2011
Diamond Offshore Announces Order for Second Ultra-Deepwater Drillship
Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that a
subsidiary, Diamond Offshore Drilling Limited, has exercised its option
to build a second ultra-deepwater drillship with Hyundai Heavy
Industries Co., Ltd. with delivery scheduled for the fourth quarter of
2013. Total cost, including commissioning, spares and project
management, is expected to be approximately $590 million and is
anticipated to be paid out of cash flow and available funds. Diamond
Offshore has also obtained from Hyundai a fixed-price option for the
purchase of a third drillship which the Company has the right to
exercise at any time before the end of the first quarter of 2011. The
two new drillships are planned to be named Ocean BlackHawk and Ocean
BlackHornet.
Like its previously announced sister drillship, the BlackHornet
will be dynamically-positioned, have a seven ram blow-out preventer,
dual activity capability, five mud pumps and a maximum hook-load
capacity of 1,250 tons. The unit will be designed for operations in up
to 12,000 feet of water.
Diamond Offshore President and Chief Executive Officer Larry Dickerson
said: “The addition of this second new drillship to our fleet will
provide multiple ultra-deepwater options to our customers, who can then
perform state-of-the-art drilling with Diamond Offshore’s high standards
of systems integrity, safety and operational excellence. Including our
acquisitions of the Ocean Courage and Ocean Valor in 2009,
we have now purchased, ordered or upgraded seven units with capabilities
in 10,000 ft. of water over the last four years. When completed, the new
drillship will bring to sixteen the total number of deepwater rigs
deployed by Diamond Offshore as we strive to provide returns consistent
with our long history of value creation for the Company and our
stockholders.”
Diamond Offshore provides contract drilling services to the energy
industry and is a leader in deepwater drilling. Additional information
on Diamond Offshore and access to the Company’s SEC filings is available
on the Internet at www.diamondoffshore.com.
Statements contained in this press release which are not historical
facts are “forward-looking statements” within the meaning of the federal
securities laws. Forward-looking statements include, without limitation,
statements concerning future costs, sources of funds, timing of delivery
and future returns, and are inherently uncertain and subject to a
variety of risks that could cause actual results to differ materially
from those expected by management of the Company. A discussion of the
important risk factors and other considerations that could materially
impact these matters as well as the Company’s overall business and
financial performance can be found in the Company’s reports filed with
the Securities and Exchange Commission and readers of this release are
urged to review those reports carefully when considering these
forward-looking statements. Copies of these reports are available
through the Company’s website www.diamondoffshore.com.
Given these risk factors, investors and analysts should not place undue
reliance on forward-looking statements. Any such forward-looking
statements speak only as of the date of this press release. The Company
expressly disclaims any obligation or undertaking to release publicly
any updates or revisions to any forward-looking statement to reflect any
change in the Company’s expectations with regard thereto or any change
in events, conditions or circumstances on which any forward-looking
statement is based.
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