Diamond Offshore Drilling, Inc. reports 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.'

Tags: Diamond Offshore Drilling