13:00 | 03.01.2011
Diamond Offshore Announces Order for Ultra-Deepwater Drillship
Diamond Offshore Drilling, Inc. (NYSE:DO) today announced that a
subsidiary, Diamond Offshore Drilling Limited, has entered into a
turnkey contract with Hyundai Heavy Industries Co., Ltd. for
construction of a new ultra-deepwater drillship with delivery scheduled
for late in the second quarter of 2013. Total cost, including
commissioning, spares and project management, is expected to be
approximately $590 million and will be paid out of available funds.
Diamond Offshore has also obtained from Hyundai a fixed-price option for
the purchase of a second drillship which the Company has the right to
exercise at any time before the end of the first quarter of 2011.
The dynamically-positioned drillship will 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 a new drillship to our fleet is part of a
continuing effort to enhance our ultra-deepwater capabilities at
attractive capital costs. Including our opportunistic acquisitions of
the Ocean Courage and Ocean Valor in 2009, we have now
purchased, ordered or upgraded six 10,000-foot ultra-deepwater units
over the last four years. New drillship construction costs have declined
substantially from peak pricing. As a result, we believe this new
drillship will 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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