DALLAS, Jan 19, 2006 (BUSINESS WIRE) -- ENSCO International Incorporated (NYSE:ESV) announced
that a wholly-owned subsidiary of the Company has entered into a
drilling contract with two large independent oil companies to provide
a new ultra-deepwater semisubmersible drilling rig, to be named ENSCO
8501. The drilling contract with Nexen Petroleum U.S.A. Inc., a
subsidiary of Nexen Inc. (NYSE:NXY) and with Noble Energy, Inc.
(NYSE:NBL) is for a firm three and a half year primary term, with four
one-year extension options at mutually agreed day rates. The term
commitment is comprised of a two year obligation by Nexen and a one
and a half year obligation by Noble Energy. The aggregate day rate
revenue expected to be paid under the contract during the primary term
is approximately $423 million. Under the terms of the agreement, ENSCO
will also be reimbursed for mobilization and other start-up costs, and
day rates will be adjusted for future variances in operating costs.
The Company also announced that it entered into an agreement with
Keppel FELS Limited in Singapore to construct ENSCO 8501. The total
project cost of ENSCO 8501 is currently expected to be approximately
$338 million, with mobilization to the Gulf of Mexico anticipated by
the second quarter of 2009. ENSCO 8501 is the Company's second
semisubmersible rig in the 8500 Series, and the Company's third
deepwater semisubmersible rig, joining ENSCO 7500, delivered in
2000, and ENSCO 8500, which is expected to be delivered in the second
quarter of 2008.
The ENSCO 8500 Series deepwater semisubmersibles are an enhanced
version of the ENSCO 7500. The 8500 Series rigs will be capable of
drilling in up to 8,500 feet of water, and can readily be upgraded to
10,000 feet water-depth capability if required. Enhancements include a
two million pound quad derrick, offline pipe handling capability,
increased drilling capacity, greater variable deck load, and improved
automatic station keeping ability. With these features, the 8500
Series rigs will be especially well-suited for deepwater development
drilling.
Carl F. Thorne, ENSCO's Chairman and Chief Executive Officer,
commented: "We are pleased to have entered into a second transaction
of this type in the last few months. As with the ENSCO 8500 project,
ENSCO 8501 is expected to provide a cost-effective deepwater drilling
solution for our customers and expand ENSCO's deepwater capability on
a conservative and financially attractive basis. We are gratified to
again be working with Keppel FELS shipyard on the ENSCO 8501. We
highly value our longstanding relationship which has resulted in a
history of successfully delivering high-quality newbuild rigs on time
and within budget."
Statements contained in this news release that state Company or
management intentions, hopes, beliefs, anticipations, expectations or
predictions of future events are forward-looking statements. Such
forward-looking statements include references to the expected ENSCO
8500 and ENSCO 8501 delivery dates, the cost of ENSCO 8501, and the
anticipated drilling contract revenues for ENSCO 8501. It is important
to note that the Company's actual results could differ materially from
those projected in such forward-looking statements. The factors that
could cause actual results to differ materially from those in the
forward-looking statements include the following: (i) delay in the
anticipated ENSCO 8500 and ENSCO 8501 delivery dates, (ii) changes in
actual cost of ENSCO 8501, (iii) changes in the actual ENSCO 8501
drilling contract revenue or term, (iv) general rig construction
risks, (v) risks of rig design and delivery acceptance, (vi) risks
associated with shipbuilding in foreign jurisdictions, (vii) force
majeure events, (viii) renegotiation, nullification, or breach of
contracts, and (ix) the risks described from time to time in the
Company's SEC filings. Copies of such filings may be obtained by
contacting the Company or the SEC.
The Company disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward-looking statements to reflect
any change in Company or management expectations or any change in
events, conditions or circumstances on which any such statements are
based.
ENSCO, headquartered in Dallas, Texas, owns and operates a modern
fleet of offshore drilling rigs servicing the petroleum industry on a
global basis.
SOURCE: ENSCO International Incorporated
ENSCO International Incorporated, Dallas
Richard LeBlanc, 214-397-3011