Fred Olsen Extends Drillship Option With Hyundai Heavy

Pictured: Deepwater Champion, the first drillship Hyundai Heavy delivered on November 16, 2010

Fred Olsen today said it has reached an agreement with Hyundai Heavy Industries to extend its option for a second newbuild drillship originally set to expire this month.  The option was included on a US$615 million contract announced in April 2011 for a state-of-the-art ultra-deepwater drillship with delivery set for the 3rd quarter 2013.

The new agreement extends the options call date to December 20, 2011.  If exercised the newbuild will be delivered in the 1st quarter of 2014.

The new DP drillship will be capable of operating in water depths of up to 12,000 feet, have a seven ram BOP (Blow Out Preventer), dual activity capability, five mud pumps, a 165 ton capacity heave compensated crane, a maximum hook-load capacity of 1,250 tons and an accommodation module housing for up to 210 people.

Hyundai Heavy has won orders for 10 drillships so far this year, more than any other shipbuilder.

In related news, Daewoo Shipbuilding said today it will build a $550-million drill ship for an unnamed North American company, helping the South Korean shipbuilder exceed its yearly target by US$1 billion.