Atwood Orders $600 Million Deepwater Drillship
January 31 2011 - 1:02PM
Dow Jones News
Atwood Oceanics Inc. (ATW) on Monday said it has ordered a $600
million ultra-deep-water drillship, the latest in a flurry of
orders by contract drillers betting that high oil prices will push
producers into increasingly deep waters.
Houston-based Atwood also said that it has options with South
Korea's Daewoo Shipbuilding & Marine Engineering Co. Ltd.
(042660.SE) to buy two additional drillships.
Atwood's purchase brings to 11 the number of drillships and
semisubmersible rigs that have been ordered since the end of
September. Along with those firm orders, eight companies have
disclosed options for 14 more vessels capable of drilling in up to
10,000 feet of water.
Like the drillship that Atwood has ordered, eight of the other
rigs that are under construction will be able to operate in up to
12,000 feet of water--double the depth at which the Deepwater
Horizon was drilling BP PLC's (BP, BP.LN) Macondo well when it blew
out in the Gulf of Mexico last spring.
The orders come despite the uncertainty of deep-water drilling
in the U.S. Gulf, where such exploration was pioneered. The U.S.
government has yet to issue any permits to drill new deepwater
wells since the Deepwater Horizon accident.
Atwood's new ship, the Atwood Advantage, is expected to be
delivered in September 2013.
The contract driller said it has nine months to decide if it
wants to build either of the other two ships for which it has
secured fixed prices.
Shares of Atwood recently trade 1.45% higher at $39.79.
-By Ryan Dezember, Dow Jones Newswires; 713-547-9208;
Ryan.Dezember@dowjones.com
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