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
in the fourth quarter of 2014. Total cost, including commissioning,
spares and project management, but excluding capitalized interest, is
expected to be approximately $655 million.
The new drillship, to be named Ocean BlackLion, will be of the
same design as Diamond Offshore′s three units currently on order with
Hyundai. Design specifications include dynamic-positioning, dual
activity capability, a maximum hook-load capacity of 1,250 tons, and
operating capability at water depths up to 12,000 feet, though initially
outfitted for operation at 10,000 feet. The unit will also feature two
seven-ram blowout preventer ('BOP?) stacks, with the second available
for use as a spare.
Diamond Offshore has elected to equip its previously announced
drillships now under construction with an additional seven-ram BOP to
improve rig reliability. The cost to add a second BOP is approximately
$34 million, bringing the average total price for each of the previously
announced drillships to approximately $640 million.
Diamond Offshore also announced today that it has completed the sale of
four jack-up drilling rigs in two separate transactions. The Ocean
Heritage was sold for $45 million in cash, and the cold stacked
mat-supported rigs Ocean Champion, Ocean Crusader, and Ocean Drake were
together sold for $10 million in cash; all four units were held for sale
in the Company′s first-quarter financial results.
'We are principally a floater company, and during 2012 we have sold five
jack-up rigs for a total of $95 million, which is being reinvested in
our fleet,? said Larry Dickerson, President and Chief Executive Officer
of Diamond Offshore. 'We believe this new drillship along with our four
additional units under construction?the Ocean BlackHawk, Ocean
BlackHornet, Ocean BlackRhino and Ocean Onyx?will be
profitably employed in the deep and ultra-deepwater markets.?
ABOUT DIAMOND OFFSHORE
Diamond Offshore provides contract drilling services to the energy
industry and is a leader in deepwater drilling. Diamond Offshore′s fleet
of offshore drilling rigs consists of 32 semisubmersibles, 8 jack-ups,
and one drillship, in addition to four ultra-deepwater drillships
currently under construction. For additional information and access to
SEC filings, please visit the Company′s website at Diamond Offshore is a 50.4% owned subsidiary of Loews Corporation (NYSE:
L).
FORWARD-LOOKING STATEMENTS
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, future returns and future utilization and profitability, 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 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.
