PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2012

Property, Plant and Equipment [Abstract]

A summary of property and equipment by classification is as follows (in thousands):



	September 30,
	2012			2011
Drilling vessels and equipment	$	2,523,895		$	1,578,592
Construction work in progress	438,081			736,827
Drill pipe	20,576			18,182
Office equipment and other	19,610			8,800
Cost	3,002,162			2,342,401
Less: Accumulated depreciation	(464,822		)	(455,080		)
Drilling and other property and equipment, net	$	2,537,340		$	1,887,321

New Construction Projects

During fiscal year 2008, we entered into construction contracts with Jurong Shipyard Pte. Ltd. to construct two Friede & Goldman ExD Millennium semisubmersible drilling units (the Atwood Osprey and the Atwood Condor). The Atwood Osprey was delivered in April 2011, and the Atwood Condor was delivered in June 2012.

In October 2010, we entered into turnkey construction agreements with PPL Shipyard PTE LTD in Singapore (“PPL”) to construct two Pacific Class 400 jackup drilling units (the Atwood Mako and the Atwood Manta). The Atwood Mako was delivered in August 2012 and the Atwood Manta is scheduled for delivery in late November 2012.

In January 2011, we exercised an option agreement and entered into a turnkey construction agreement with PPL to construct a third Pacific Class 400 jackup drilling unit (the Atwood Orca). The Atwood Orca is scheduled for delivery in June 2013.

In January 2011, we entered into a turnkey construction contract with Daewoo Shipbuilding and Marine Engineering Co., Ltd (“DSME”) to construct an ultra-deepwater drillship, the Atwood Advantage, at the DSME yard in South Korea. The Atwood Advantage is scheduled for delivery in September 2013.

In October 2011, we entered into a turnkey construction contract with DSME to construct an ultra-deepwater drillship, the Atwood Achiever, at the DSME yard in South Korea. The Atwood Achiever is expected to be delivered in June 2014.

In September 2012, we entered into a turnkey construction contract with DSME to construct a third ultra-deepwater drillship, the Atwood Admiral, at the DSME yard in South Korea. The Atwood Admiral is expected to be delivered in March 2015.

As of September 30, 2012, we had expended approximately $438 million towards the construction of our five drilling units under construction. Total remaining firm commitments for our five drilling units under construction were approximately $1.6 billion at September 30, 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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