Houston-based Diamond Offshore Drilling Inc. has announced that a subsidiary, Diamond Offshore Drilling Ltd, has exercised its option to build a third ultra-deepwater drillship with Hyundai Heavy Industries Co. Ltd with delivery scheduled for the second quarter of 2014. Total cost, including commissioning, spares and project management, is estimated to be USD 610 million and is anticipated to be paid out of cash flow and available funds. Like its previously announced sister drillships, the new unit will be dynamically-positioned, have a seven ram blow-out preventer, dual activity capability, five mud pumps and a maximum hook-load capacity of 1250tns. The unit will be designed for operations in up to 12,000ft of water.