According to PRNewswire, Chevron Corporation announced that it has awarded Transocean Inc. a deepwater drilling contract that will prompt the construction of a new state-of-the-art drillship by Transocean, which will be dedicated exclusively to Chevron for five years. The two companies also have signed multiyear contract extensions for two of Transocean''s deepwater drillships currently in use by Chevron. The three agreements total approximately $1.7 billion. The contract for the new drillship is expected to commence during the second quarter of 2009. After an estimated 30-month shipyard construction phase and following sea trials, it will be mobilized to the U.S. Gulf of Mexico for Chevron''s acceptance of the ship. Construction of the dynamically positioned, double-hull drillship is scheduled to take place at the Daewoo Shipbuilding and Marine Engineering Yard Co., Ltd., in Okpo, South Korea, with an estimated total capital expenditure of approximately $650 million. The drillship will feature a patented dual-activity drilling technology process that utilizes two drilling systems in a single derrick, allowing for parallel drilling operations designed to save time and money in deepwater well construction, compared with conventional rigs.