PROPERTY AND EQUIPMENT

12 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

A summary of property and equipment by classification is as follows:

	September 30,
(In thousands)	2013			2012
Drilling vessels and equipment	$	2,979,503		$	2,523,895
Construction work in progress	715,320			438,081
Drill pipe	26,743			20,576
Office equipment and other	24,439			19,610
Cost	3,746,005			3,002,162
Less: Accumulated depreciation	(581,281		)	(464,822		)
Drilling and other property and equipment, net	$	3,164,724		$	2,537,340

Recently Completed 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.

During fiscal year 2011, we entered into turnkey construction agreements with PPL Shipyard PTE LTD in Singapore (“PPL”) to construct three Pacific Class 400 jackup drilling units (the Atwood Mako, the Atwood Manta and the Atwood Orca). The Atwood Mako was delivered in August 2012, the Atwood Manta was delivered in November 2012, and the Atwood Orca was delivered in April 2013.

New Construction Projects

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 November 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 scheduled for delivery 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 scheduled for delivery in March 2015. Most recently, in June 2013, we entered into a turnkey construction contract with DSME to construct a fourth ultra-deepwater drillship, the Atwood Archer, at the DSME yard in South Korea. The Atwood Archer is scheduled for delivery in December 2015.

As of September 30, 2013, we had expended approximately $732 million on our four ultra-deepwater drillships under construction. Total remaining firm commitments for these four drilling units under construction were approximately $1.5 billion at September 30, 2013.