Samsung Heavy Industries (SHI) has converted a drillship option to a firm order with New York-listed Pacific Drilling on Tuesday.
The latest deal will be Pacific Drilling's eighth ultra-deepwater drillship with South Korea's SHI.
The cost of the drillship will be approximately $620m and delivery is slated for 16 March 2015. Financing for the construction of this drillship is expected to be covered by a combination of cash flows from ongoing operations and long term debt.
The drillship will have a rated water depth of 12,000 feet and be equipped for 40,000 feet drilling depth.