14:59 | 19.05.2011
Diamond Offshore Announces Order for Third 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 third ultra-deepwater drillship with Hyundai Heavy Industries
Co., Ltd. with delivery scheduled for the second quarter of 2014. Total
cost, including commissioning, spares and project management, is
estimated to be approximately $610 million and is anticipated to be paid
out of cash flow and available funds.
Like its previously announced sister drillships, the new unit 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 third new drillship is part of our ongoing
effort to provide multiple ultra-deepwater options to our customers,
allowing 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, we have over the past two years increased our ultra-deepwater
fleet by five units. Coupled with the Ocean Confidence, Ocean Endeavor
and Ocean Monarch, Diamond Offshore will be able to provide eight
rigs for the growing 10,000 foot and deeper market.”
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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