Noble Corporation to Construct Fourth New Ultra-Deepwater Drillship

Noble Corporation NE today announced that a subsidiary has exercised its option with Hyundai Heavy Industries Co. Ltd. ("HHI") for the construction of an additional ultra-deepwater drillship, the fourth such drillship to be ordered this year subject to the parties executing an agreed form of construction contract, which is expected to occur within the next several weeks. The additional ultra-deepwater drillship, to be named at a later date, will be constructed on a fixed price basis at HHI's shipyard in Ulsan, Korea, with expected delivery from the shipyard during the second half of 2014. Following shipyard delivery, the unit is expected to undergo the customary 90-120 day period for mobilization and acceptance prior to being ready to commence a contract. The rig is uncontracted at this time. The delivered cost of the new drillship is expected to be $630 million and includes the turnkey construction contract, Company furnished equipment, project management and spares, but excludes capitalized interest. The construction contract contains favorable payment terms that incentivize on-time delivery.