Pacific Drilling has announced that Chevron U.S.A has selected its ultra-deepwater drillship the Pacific Sharav for a five-year contract for operations in the Gulf of Mexico, US.

The five-year contract is expected to generate revenues of about $1.07bn which includes mobilization and modifications as requested by the client.

The Pacific Sharav drillship can operate in water depths of up to 12,000ft and can drill wells up to 40,000ft deep.

Pacific Drilling CEO Chris Beckett said the contract is an expansion of the company’s relationship with Chevron to include a third drillship.

"This contract exemplifies our strategic commitment to building strong customer relationships and allows us to leverage the operations support infrastructure which we have already developed in the region," Beckett said.

Samsung Heavy Industries in Korea is expected to deliver the drillship in the final quarter of 2013 following the completion of construction and client requested modifications.

The new contract has brought the company’s total contract backlog to around $3.2bn as of on 22 June, 2012.

Pacific Drilling is an ultra-deepwater drilling contracting company.