HOUSTON, July 6, 2007 (PRIME NEWSWIRE) -- Pride International, Inc. (NYSE:PDE) today announced that the company will construct an advanced-capability, dual activity drillship for use in ultra-deepwater drilling locations. The new rig will be capable of drilling in water depths of up to 12,000 feet, with a total vertical drilling depth of up to 40,000 feet. The rig, to be constructed by Samsung Heavy Industries Co., Ltd. (SHI) on a fixed-price basis, is expected to be delivered from the shipyard in the third quarter 2010, following construction, commissioning and system integrated testing.
Louis A. Raspino, president and chief executive officer of Pride International, stated, "Customer requirements for deepwater drilling capacity continue to expand, as successful results in exploration drilling lead to prolonged field development programs around the world, placing deepwater assets in short supply beyond the end of the decade. As a result of activity levels, it has become increasingly difficult to match shipyard delivery dates with customer requirements. Our commitment to build this unit was initially driven by the need to protect the delivery date necessary to meet a specific customer requirement. While we have not reached an agreement with that customer, we do believe it is important to proceed given the long-term market outlook and attractive delivery date."
Raspino added, "We are highly confident that the favorable conditions in the deepwater sector will persist, producing attractive contracting opportunities for deepwater drilling rigs. As a result, we are committing to the construction of this premium asset, demonstrating continued progress toward our strategic direction of expansion in the deepwater sector.
"The addition of this premium, ultra-deepwater rig to our fleet, which currently ranks second in the industry for dynamically positioned, deepwater drilling units, improves our ability to prosper in the long-term strength of the deepwater market and better serve our customers' needs worldwide," Raspino said.
The new drillship, to be named at a later date, is based on an SHI proprietary hull design measuring 750 feet long, 140 feet wide and offering a variable deck load of 20,000 metric tons. The rig will feature dynamic positioning station-keeping with DPS-3 certification. In addition, the rig will have dual activity capabilities, designed to save customers time during the well construction process when compared to conventional single activity rigs. The company has obtained a license from the patent holder to utilize the dual activity technology.
The rig will also have expanded drilling fluids capacity, a 1,000 ton top drive and living quarters for up to 200 personnel. The drillship will be constructed at the SHI shipyard in Geoje, South Korea and will be initially equipped for drilling in water depths up to 8,000 feet. The expected fixed-price project cost of the rig, including commissioning and system integrated testing, is approximately $680 million, excluding capitalized interest. The company expects to fund the cost of the rig through available cash and borrowing against its revolving credit facility.
Pride International, Inc. will host a conference call at 11:00 a.m. ET on Monday, July 9, 2007, to discuss in greater detail today's announcement. Individuals who wish to participate in the conference call should dial 913-643-4235 and refer to confirmation code 2617743 approximately five to 10 minutes before the scheduled start of the call. In addition, the conference call will be simulcast through a listen-only broadcast over the Internet and can be accessed by logging onto www.prideinternational.com and selecting the Investor Relations link. A telephonic replay of the conference call should be available after 1:00 p.m. ET on July 9 and can be accessed by dialing 719-457-0820 and referring to pass code 2617743.
Pride International, Inc., headquartered in Houston, Texas, is one of the world's largest drilling contractors. The company provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 278 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, five managed deepwater rigs and 215 land rigs.
The Pride International, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3388
Statements regarding rig operating specifications and the expected delivery date, customer requirements for deepwater drilling capacity, customer drilling plans, future demand for rigs, status of the deepwater drilling sector and expected contracting opportunities, location for rig construction, fixed-price project cost, as well as any other statements that are not historical facts, are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.