Atwood issues LOI for new jackup

Atwood Oceanics says it has executed a letter of intent with Keppel AmFELS for the construction of a mobile self-elevating LeTourneau SUPER 116 jackup.

Offshore staff

(US, GoM) - Atwood Oceanics, Inc. announced that its wholly owned subsidiary, Atwood Oceanics Pacific Ltd. (AOPL), has executed a letter of intent with Keppel AmFELS, Inc. for the construction of a mobile self-elevating LeTourneau SUPER 116 jackup.

AOPL has also secured an option to purchase from LeTourneau, Inc. a SUPER 116 KIT and license which will be required for construction of the new rig.

The drilling contractor says it retains the right to upgrade the "base" SUPER 116 design to the "enhanced" version.

Potential enhancements include increasing the cantilever capability, quarters capacity, variable deck load, and mud system and tanks capacities. If constructed, the new rig will be an ultra-premium class jackup, suited for operations worldwide.

Rig construction will take place at the Keppel AmFELS yard in Brownsville, Texas, with delivery expected no later than Sept. 30, 2008. AOPL estimates the total cost of construction (including administrative and overhead costs and capitalized interest) at $150 million to $160 million.

Finalization of the contract and subsequent construction of the new rig is subject to customary definitive agreements with Keppel AmFELS and LeTourneau. The new rig would become the ninth mobile offshore drilling unit owned by Atwood Oceanics, Inc. and its subsidiaries.

02/08/06

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