Transocean Ltd. announced that a subsidiary has awarded contracts to Sembcorp Marine's subsidiary, Jurong Shipyard, in Singapore for construction of two newbuild dynamically positioned ultra-deepwater drillships. The two drillships are expected to be delivered from the shipyard in the second quarter of 2017 and the first quarter of 2018, respectively.

The combined capital cost for the two drillships is estimated at approximately $1.24 billion including the shipyard contracts; project management; owner-furnished equipment; inventory and capital spares; but excluding capitalized interest. The payment terms for both rigs are very favorable to Transocean.

Additionally, Transocean has entered into an option agreement to order up to three additional drillships of the same design and specifications on similar terms. The first option must be exercised within one year, the second within 18 months, and the final within 24 months.

Tags: Transocean Ltd.