Transocean said the contracts have a combined value of $1.24 billion for Jurong Shipyard, a Sembcorp Marine subsidiary. The contract calls for the construction of two rigs that can operate in waters as deep as 12,000 feet.
The contracts include the option for as many as three more drill ships of the same design and under similar terms. The first two drill ships are expected to be delivered from a Singapore shipyard as early as mid-2017.
Sembcorp said in a statement Wednesday there are six drilling rigs built at its Singapore yards in Transocean's fleet. Transocean in its fleet status report for February listed 14 rigs in service.
"We are pleased that Transocean has chosen Jurong Shipyard as a strategic partner to build their drill ships with us," Jurong Shipyard General Manager William Gu said in a statement.
Transocean's Deepwater Horizon rig caught fire and sank in the Gulf of Mexico in 2010, leading to one of the largest offshore oil spills in the history of the industry.