Korean Shipyard to Construct Ultra-deepwater Rig for Seadrill

Seadrill announce Hyundai Samho Shipyard are contracted to build a harsh environment semi-submersible drilling rig

To benefit from the current strong demand for high specification drilling units Seadrill announced that it has entered into a turnkey construction contract with Hyundai Samho Shipyard for the construction of a new harsh environment semisubmersible drilling rig. The new rig will be a sister rig of the harsh environment semi-submersible unit Seadrill's subsidiary North Atlantic Drilling currently have under construction at Jurong Shipyard in Singapore.

The new rig will be of a Moss CS60 design, N class compliant and be fully winterized to meet the harsh and demanding weather conditions in the North Atlantic areas. In addition, the new rig will have premium ultra deepwater capabilities including water depth of up to 10,000 feet. The new rig is scheduled for delivery in the fourth quarter 2014.

Total estimated project costs is less than $650 million including a turn key yard contract with a back-end loaded payment structure. In addition, Seadrill has agreed a fixed price option for one further unit from the yard.

Seadrill has already received charter interest in the firm unit. With the strong demand Seadrill feels it is likely that the option will be exercised. However, a final decision will not be taken before August 2012.

Seadrill's construction program now totals 18 units, including 6 drillships, 2 harsh environment semisubmersibles, 5 tender rigs and 5 jackups. In addition to the rigs under construction, Seadrill also controls several fixed price options at various yards.