Houston- headquartered offshore piercing professional Atwood Oceanics revealed Tuesday it has actually gotten to a contract with South Korean shipbuilder Daewoo Shipbuilding & & Marine Engineering to delay the shipment of 2 newbuild ultra-deepwater drillships by 2 years.

Delivery of the newbuilds Atwood Admiral as well as Atwood Archer is currently set up till September 30, 2019 as well as June 20, 2020, specifically, Atwood Oceanics claimed Tuesday.

Atwood Admiral as well as Atwood Archer were bought in 2012 as well as 2013, specifically, at an expense of around $635 million each. Deliveries were initially set up for March 2015 as well as December 2015, however the shipments were at first pressed back to September 2017 as well as June 2018.

In link with one of the most current hold-up, Atwood will certainly make a repayment of $125 million for the Atwood Archer on or prior to December 15, 2016, in addition to a repayment of $15 million on or earlier than June 30, 2018 or the shipment day. In regard of the Atwood Admiral, Atwood will certainly make a repayment of $10 million on or earlier than September 30, 2017 or the shipment day.

DSME has actually accepted expand all continuing to be landmark repayments, consisting of $83.9 million plus costs as well as passion for the Atwood Admiral as well as $165.0 million plus costs as well as passion for the Atwood Archer, till December 30, 2022.

Under the arrangement, Atwood has actually concurred not to end the building and construction agreements other than based on the regards to the supplementary contracts.

“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,” claimed Rob Saltiel, President as well asChief Executive Officer “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,” included Saltiel.

Mark Smith, Senior Vice President as well as Chief Financial Officer, included: “Our liquidity position is enhanced by approximately $250 million from June 30, 2018 until final payments are made to DSME on December 30, 2022. This lengthened time for making final milestone payments represents a staggering of our debt maturities. Following the December 15, 2016 payment, all interest expenses on the outstanding amounts due to DSME will be accrued and paid at the time of the final milestone payment, improving our free cash flows through 2022.”

NYSE-listed Atwood Oceanics presently possesses 10 mobile overseas boring systems as well as is creating both ultra-deepwater drillships.