Atwood Oceanics, Inc. announced that its wholly owned subsidiary, Atwood Oceanics Pacific Limited (AOPL), has been awarded a contract by Chevron Australia Pty. Ltd. to provide a newly constructed Mobile Offshore Semisubmersible Drilling Unit for a firm three year period, with an option to extend the firm period to six years. The contract provides for an operating dayrate of approximately $470,000, if the firm commitment is three years and approximately $450,000, if the option is exercised to extend the firm commitment period to six years. Both dayrates are subject to adjustment pursuant to cost escalation provisions of the contract.
To provide the drilling rig required by this contract, AOPL has executed a construction contract with Jurong Shipyard Pte. Ltd. (Jurong) to construct a Friede & Goldman ExD Millennium Semisubmersible Drilling Unit. The new rig will
be constructed at Jurong's shipyard in Singapore, with delivery expected to occur in early 2011.