Diamond Offshore Drilling, Inc. announced an agreement with Hyundai Heavy Industries Co., Ltd. to build a new Moss CS60E design harsh environment semisubmersible drilling rig. The 10,000’ dynamically positioned rig is expected to be delivered after November 2015. Projected capital cost of the unit including spares, commissioning and shipyard supervision is approximately $755 million.

The Company also announced that a three-year drilling contract has been entered into with a subsidiary of BP plc to utilize the rig for initial operations off the coast of South Australia. The initial operating dayrate under the drilling contract is $585,000 per day and is subject to upward adjustment for certain increased operating costs and equipment modifications.

“We are pleased to have been selected by BP for this important work,” commented Larry Dickerson, Diamond Offshore’s CEO. “Our Company, and its predecessors, have been continuously active in Australia since 1982, drilling over 600 wells; far more than any other drilling contractor. We believe that this market-leading experience should enable Diamond Offshore to play a key role in our customer’s exploration efforts and we look forward to this opportunity.”

About Diamond Offshore
Diamond Offshore provides contract drilling services to the energy industry and is a leader in deepwater drilling. Diamond Offshore’s fleet of offshore drilling rigs consists of 30 semisubmersibles, seven jack-ups and one drillship, in addition to four ultra-deepwater drillships and three deepwater semisubmersibles currently under construction.