Diamond Offshore Drilling Inc. has entered into a letter of intent (LOI) with Keppel FELS Ltd. in Singapore for construction of two high-performance jackup rigs. The units, one to be constructed in Singapore, and the other in Brownsville, Texas, have an aggregate cost of approximately $300 million, including spares, commissioning, site supervision, and other costs during construction.
Both rigs will be 350-ft KFELS MOD V B-Class (Super) design, capable of drilling to 35,000 ft with a hook load capacity of 2 million lb and a cantilever reach of 70 ft. Delivery of both units is anticipated in the 1Q 2008. The LOI also provides an option for construction of a third jackup rig at a later date. The transaction is subject to execution of a definitive construction contract.
Diamond Offshore President and COO Larry Dickerson said, "The primary focus of the company has been enhancing our deepwater rigs, while at the same time we have significantly modernized our jackup fleet. Based on the strength of the market, we believe the construction of these premium jackup units will augment our ability to offer a full range of services to our customers."