Diamond Offshore Announces Order for $590M

Diamond Offshore Drilling, Inc. DO today announced that a subsidiary, Diamond Offshore Drilling Limited, has entered into a turnkey contract with Hyundai Heavy Industries Co., Ltd. for construction of a new ultra-deepwater drillship with delivery scheduled for late in the second quarter of 2013. Total cost, including commissioning, spares and project management, is expected to be approximately $590 million and will be paid out of available funds. Diamond Offshore has also obtained from Hyundai a fixed-price option for the purchase of a second drillship which the Company has the right to exercise at any time before the end of the first quarter of 2011.