Ensco plc Sublets ENSCO 8503 Ultra-Deepwater Semisubmersible Drilling Rig

12/01/2010

LONDON--(BUSINESS WIRE)-- Ensco plc (NYSE: ESV) announced today that a subsidiary of the Company has sublet ENSCO 8503, a new ultra-deepwater semisubmersible drilling rig that recently mobilized to the U.S. Gulf of Mexico. ENSCO 8503 is scheduled to begin sea trials shortly.

Under the sublet agreement, once rig acceptance procedures have been completed in the U.S. Gulf of Mexico, ENSCO 8503 will mobilize to offshore French Guiana to commence drilling operations for a subsidiary of Tullow Oil plc on behalf of itself and its coventurers in the license (Shell, Total, and Northpet Investments). Acceptance procedures will be witnessed jointly by Tullow and Cobalt International Energy, L.P. (NYSE: CIE), the original customer for ENSCO 8503.

Mobilization to offshore French Guiana is scheduled to begin in early 2011. The combined mobilization and demobilization will be approximately 50 days in total and drilling operations in French Guiana are estimated to be up to three months in duration. The day rate under the sublet agreement is approximately $440,000. The mobilization and demobilization rate is approximately 75% of the day rate. Following the sublet period, which ends upon completion of demobilization back to the U.S. Gulf of Mexico, the rig will resume its contract with Cobalt. The two-year term under the original ENSCO 8503 drilling contract with Cobalt will not be reduced by the sublet period.

Senior Vice President Carey Lowe commented, "The sublet agreement provides many benefits to all parties. Tullow is contracting a state-of-the-art drilling rig for a short-term assignment. Cobalt now has additional time to secure permits in the U.S. Gulf of Mexico before incurring certain drilling costs and Ensco has gained a new deepwater customer in a new market. Innovative solutions like this underscore Ensco's commitment to being the offshore driller of choice."

Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. With a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs, Ensco serves customers with high-quality equipment, a well-trained workforce and a strong record of safety and reliability. To learn more about Ensco, please visit our website at www.enscoplc.com. Ensco plc is an English limited company (England No. 7023598) with its registered office and global headquarters located at 6 Chesterfield Gardens, London, W1J 5BQ.

Statements contained in this press release that state the Company's or management's intentions, plans, hopes, beliefs, expectations, anticipations, projections, confidence, schedules, or predictions of the future are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995.

Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "could," "may," "might," "should," "will" and words and phrases of similar import. The forward-looking statements include, but are not limited to, statements about the ENSCO 8503 sublet agreement and the anticipated completion of acceptance testing and mobilization to French Guiana, the duration of the Tullow contract and the post-suspension resumption of the Cobalt contract.

Forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Numerous factors could cause actual results to differ materially from those in the forward-looking statements, including: (i) the impact of the BP Macondo well incident in the U.S. Gulf of Mexico upon future deepwater and other offshore drilling operations in general, and as respects current and future actual or de facto deepwater drilling permit and operations moratoria/suspensions, new and future regulatory, legislative or permitting requirements (including requirements related to equipment and operations), future lease sales and other governmental activities that may impact deepwater and other offshore operations in the U.S. Gulf of Mexico in particular, (ii) renegotiation, nullification, cancellation or breach of contracts or agreements with customers or other parties including sublet agreements, (iii) the impact of current and future government laws and regulation affecting the oil and gas industry in general and our operations in particular, (iv) governmental action and political and economic uncertainties, which may create a force majeure situation, (v) difficulties that may be encountered when commencing operations in a new market and (vi) operational and other risks as described from time to time as Risk Factors in the Company's SEC Filings.

Copies of such SEC filings may be obtained at no charge by contacting our Investor Relations Department at 214-397-3045 or by referring to our website at www.enscoplc.com. All information in this press release is as of today. The Company undertakes no duty to update any forward-looking statement, to conform the statement to actual results, or reflect changes in the Company's expectations.

    Source: Ensco plc