OSLO -- A wholly owned subsidiary of Fred Olsen Energy ASA (FOE.OL) has entered into a turnkey contract with Hyundai Heavy Industries Co. Ltd. for the building of a harsh environment ultra deepwater semi-submersible drilling rig with scheduled delivery in March 2015.

Total project cost is estimated to USD$700 million (including spare parts, owner furnished equipment and yard project team). Another subsidiary of Fred Olsen Energy has been granted an option from Hyundai for the purchase of a similar second drilling rig exercisable by October 2012.

The new drilling rig will be a Moss Maritime CS 60 E design and is designed for water depth capacity of up to 10,000 feet. The unit will be fully compliant with Norwegian Continental Shelf requirements, and is designed for year-round operations in the Norwegian Barents Sea.