Bermuda: Seadrill has entered into an agreement to acquire two ultra-deepwater semi-submersible drilling rigs, 'Seadragon I' and 'Seadragon II'.
The total project price for the two rigs, which are currently under construction at the Jurong Shipyard in Singapore, is estimated to be approximately US$1.2 billion with delivery expected in the first quarter and fourth quarter of 2011.
Seadrill has secured new bank debt to finance the investment in which the two rigs will serve as security for the new debt.
"We expect the demand for ultra-deepwater units to strengthen over the next years. This investment increases our exposure to this growing market segment at an acceptable price and a manageable risk," said Alf C Thorkildsen, CEO of Seadrill.
The cash break-even cost per day for each rig including operating cost, tax, interest expenses and scheduled debt instalments is expected to be around US$385,000.
The rigs are based on the Moss Maritime CS50 Mk II design and belong to a new generation of drilling units, focusing on a broader spectre of operational capabilities, a larger operating area, a high load carrying capacity, efficiency and improved safety and working environment as well as a special environmental focus.
The dynamically positioned (DP 3 class certification) rigs are equipped with NOV drilling equipment and have water depth capability up to 3.05 kilometres and total vertical drilling depth capacity up to 10.7 kilometres.
The rigs each have a single derrick with dual pipe handling and offline stand building capabilities providing for increased efficiency.
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