Noble Corporation (NYSE: NE) reports that a subsidiary has exercised its first option with Hyundai Heavy Industries Co. Ltd. for the construction of an additional ultra-deepwater drillship.
This is the third such drillship to be ordered this year subject to the parties executing a definitive construction contract which is expected to occur within the next week.
Fixed price
This increases the company’s number of floating drilling units to 27, of which 15 are dynamically positioned. The new ultra-deepwater drillship, to be named at a later date, will be constructed on a fixed-price basis at HHI’s shipyard in Ulsan, Korea, with an expected delivery from the shipyard in the second quarter of 2014. Following shipyard delivery, the unit is expected to undergo the customary 90-120 day period for mobilization and acceptance prior to being ready to commence a contract. The unit is uncontracted at this time.
Turnkey construction contract
The delivered cost of the new drillship is expected to be $615 million and includes the turnkey construction contract, company furnished equipment, project management and spares, but excludes capitalized interest. The construction contract contains favorable payment terms that incentivize on-time delivery. Under the terms of its agreement with HHI, Noble has one remaining fixed-price option for an additional drillship. The expiration of this remaining option has been extended to August 31, 2011 with delivery taking place in the second half of 2014.
Source: https://www.marinelog.com[marinelog]
