Offshore drilling services provider Transocean has been awarded a new contract for an ultra-deepwater drillship by Chevron.

The newbuild dynamically positioned drillship is designed to operate in water depths of up to 12,000 feet and drill wells to 40,000 feet. It will accommodate up to 240 people.

The capital costs for the five-year project are estimated at $725million (£452million).

Construction of the vessel is expected to start by the end of next year at a Dewoo facility in Korea, where Transocean currently has six other ultra-deepwater drillships under construction.

“We are delighted to continue our partnership with Chevron in pioneering ultra-deepwater drillships that in the past have set world records and achieved strong utilization with time-saving efficiencies,” said Steven L. Newman, president and chief executive of Transocean.

“The addition of this latest newbuild drillship demonstrates the execution of our asset strategy and commitment to increasing our exposure to high-specification floaters with industry-leading capabilities.”