A major contract driller
Diamond Offshore Drilling Inc.
) has engaged Korea-based Hyundai Heavy Industries Co. Ltd. to
construct a new 10,000 feet dynamically positioned rig at an
estimated cost of $755 million. The cost includes spares,
commissioning and shipyard supervision.
BP PLC (BP): Free Stock Analysis Report
DIAMOND OFFSHOR (DO): Free Stock Analysis
ENERPLUS CORP (ERF): Free Stock Analysis
NEWPARK RESOUR (NR): Free Stock Analysis
To read this article on Zacks.com click here.
The new Moss CS60E design harsh environment semisubmersible
drilling rig is scheduled for delivery after Nov 2015. In
conjunction with this newbuild rig order, Diamond also inked a
three-year contract with a subsidiary of
Per the drilling contract, BP will use the new rig for initial
operations off the coast of South Australia at a dayrate of
$585,000 per day. The dayrate is subject to upward adjustment for
certain increased operating costs and equipment adjustments.
Diamond has been operating in Australia since 1982 and remains
the only drilling contractor to have spud more than 600 wells.
This vast experience of the company will help it in enhancing the
exploration efforts of BP's customers.
Diamond Offshore Drilling provides comprehensive offshore
drilling services to the global energy industry. The company's
drilling fleet of 46 consists of 32 semi-submersibles, 13 jackups
and a dynamically positioned drillship.
Diamond Offshore currently has three drillships on order, two of
which are expected to be delivered later in the second and fourth
quarters of 2013. The third drillship is expected to be delivered
at the end of the second quarter of 2014. The company's rigs
operate in the Gulf of Mexico (GoM), the U.K. North Sea, South
America, Africa, Australia and Southeast Asia.
Diamond carries a Zacks Rank #3 (Hold). However, there are other
Zacks Ranked #1 (Strong Buy) stocks -
Newpark Resources Inc.
) - which appear more attractive as these are expected to
outperform over the next few months.