Pacific Drilling S.A. reported that its wholly-owned subsidiary exercised an option to construct its eighth ultra-deepwater drillship with Samsung Heavy Industries.

'We are extremely pleased to announce the order of our eighth ultra-deepwater drillship,' stated Pacific Drilling CEO Chris Beckett. 'The strong market for deepwater drilling, attractive construction cost, strength of relationships with our preferred vendors, and robust operating performance of our in-service rigs support the decision to invest in the further expansion of our fleet.'

The drillship will have a rated water depth of 12,000 feet, be equipped for 40,000 feet drilling depth, have accommodation for 200 personnel and be equipped to support dual gradient drilling. The total cost, excluding capitalized interest, will be approximately $620 million and delivery is scheduled for March 16, 2015. Financing for the construction of this rig is expected to be provided by a combination of cash flows from ongoing operations and long-term debt.

Tags: Pacific Drilling Ltd.