HOUSTON – Atwood Oceanics Inc. and Daewoo Shipbuilding & Marine Engineering Co. (DSME) have agreed to delay the delivery of the newbuild ultra-deepwater drillships, Atwood Admiral and Atwood Archer, by two years to Sept. 30, 2019 and June 30, 2020, respectively.
In connection with the delay, Atwood will make a payment of $125 million for the Atwood Archer on or before Dec. 15, 2016, as well as a payment of $15 million on the earlier of June 30, 2018 or the delivery date.
For the Atwood Admiral, the company will make a payment of $10 million on the earlier of Sept. 30, 2017 or the delivery date.
DSME will extend all remaining milestone payments, which include $83.9 million plus fees and interest for the Atwood Admiral and $165.0 million plus fees and interest for the Atwood Archer, until Dec. 30, 2022.
Rob Saltiel, president and CEO, said: “The restructuring of payment and delivery schedules for the Atwood Admiral and Atwood Archer is an important step in our capital structure management, enhancing liquidity and improving capital commitment timing.
“The two-year extensions on the delivery dates greatly improve our confidence that we will secure suitable drilling services contracts on both rigs prior to taking delivery. We now have the opportunity to earn revenues on these rigs that will cover some or all of the final payments to the shipyard.
“We appreciate the flexibility that DSME has provided to Atwood Oceanics in response to this severe industry downturn.”