Atwood Oceanics, a Houston-based international drilling contractor, has executed turnkey construction agreements with PPL Shipyard to construct two Pacific Class 400 jack-up drilling units.

These new rigs will have a rated water depth of 400ft, accommodations for 150 personnel and significant offline handling features.

The rigs are scheduled for delivery in September and December 2012, and the total cost, including project management, drilling and handling tools, spares and capitalized interest, of each rig approximates $190m.

Financing for the construction of the rigs is expected to be provided from a combination of ongoing cash flows of Atwood Oceanics and debt, as necessary, from the company’s current senior credit facilities.

The company said it will consider whether any additional debt may be necessary in connection with fleet expansion.

Atwood Oceanics and PPL have also arranged option agreements for up to three additional Pacific Class 400 jack-up drilling units.