Samsung Heavy Industries (SHI) won a $600m order to build a new ultra-deepwater drillship for Seadrill with an option to build a similar unit.

The delivery of the firm order is scheduled for the fourth quarter of 2014 and the optional unit can be delivered in the first quarter of 2015 if exercised.

With the current strong demand there is limited availability of rigs in 2014 and Seadrill believes it is likely that the option will be exercised. Seadrill added that yard costs are currently at very attractive levels.

“We have a unique environment where both daily rates and contract duration are increasing to new highs, while yard prices remain low due to the overcapacity in the shipyard industry,” said John Fredriksen, chairman of Seadrill. “This presents an excellent investment opportunity under which we can continue to aggressively grow Seadrill.”

(Source:shipping online)