U.S. contract driller Rowan Cos Plc (RDC.N) said it has exercised its option to build a fourth ultra-deepwater drillship with Hyundai Heavy Industries Co Ltd (009540.KS) at a cost of about $620 million.
The cost includes commissioning, project management and spares, but excludes capitalized interest, the company said in a statement adding that the expected delivery in March 2015.
The total cost for Rowan's fourth drillship will be about 6 percent higher than the first three drillships due to equipment price and labor cost increases, it added.
Houston-based Rowan, whose 31 shallow-water rigs are working in the Middle East, the North Sea, Trinidad, Southeast Asia and the Gulf of Mexico, said it expects the first drillship to be delivered by late 2013. The second and third drillships are expected to be delivered in the second and fourth quarters of 2014 respectively.
(Reporting by Sunayan Bhattacharjee in Bangalore; Editing by Alison Birrane)