Monday, December 15, 2008

Deep Down Wins $11.1m Deal

Deep Down, Inc. said it received an executed $11.1 million contract from Delba Drilling International Cooperatie U.A. to supply and install the deepwater marine drilling riser flotation system for the new-build Delba III semisubmersible drilling rig.

The original letter of intent, initially estimated at $9 million, was received May 23, 2008. The increase in the value of the contract is reflective of engineering changes to satisfy additional lift requirements. The Delba III semisubmersible drilling rig is rated to drill in 2,400 m of water and is readily upgradeable to 2,700 m. The Delba III has long-term contracts to drill in Brazilian waters. The rig set of flotation for the Delba III is scheduled to be delivered by early 2010.

The manufacturing requirements under the Delba III contract will be managed by Flotation Technologies, a Deep Down subsidiary. The installation of the drilling riser flotation system will be managed by Deep Down (Delaware), also a Deep Down subsidiary.

Delba International has secured financing for the construction of the Delba III semisubmersible drilling rig. Deep Down is now focused on achieving a successful contract execution on the Letter of Intent for the Delba IV semisubmersible drilling rig, which was announced on June 6, 2008.

Source: http://www.seadiscovery.com/mt/mtStories.aspx?ShowStrory=1027252083

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