Chevron taps Atwood for semisubmersible newbuild

Jan. 7, 2008
Chevron Australia let a contract to Atwood Oceanics Inc. for the construction of a semisubmersible drilling unit for a period of at least 3 years, with an option for up to 6 years.

Eric Watkins
Senior Correspondent

LOS ANGELES, Jan. 7 -- Chevron Australia let a contract to Atwood Oceanics Inc. for the construction of a semisubmersible drilling unit for a period of at least 3 years, with an option for up to 6 years.

The rig will be moored in as much as 6,000 ft of water with its own mooring equipment, but could work an additional 2,000 ft using prelaid mooring equipment.

The operating cost of the rig will be $470,000/day for 3 years and, subject to cost escalation provisions in the contract, it may increase.

Atwood said the total cost of the rig, including administrative and overhead costs and capitalized interest, will be $570-590 million.

Atwood executed a construction contract with Jurong Shipyard Pte. Ltd. to construct the drilling unit at Jurong's Singapore shipyard, with delivery expected in early 2011.

A Chevron spokesman said the contract underpins Chevron Australia's long-term commitment to find, appraise, and develop Australian gas resources for domestic and international markets.

Contact Eric Watkins at [email protected].