Three New Jackups Now Under Construction
LONDON--(BUSINESS WIRE)--
Ensco plc (NYSE: ESV) announced today that it has ordered a new
ultra-premium harsh environment jackup rig to be built under a
fixed-price shipyard construction contract with Keppel FELS Limited
(“KFELS”) in Singapore. Including commissioning, systems integration
testing and project management, the construction cost is expected to be
approximately $260 million. The shipyard construction price for the rig
is approximately $245 million. Ensco negotiated attractive payment terms
with 20% due at contract signing and 80% payable upon delivery. The
delivery is scheduled for third quarter 2014 and the rig will have the
same design as the initial two rigs ordered earlier this year that are
scheduled for delivery in 2013.
Senior Vice President
John Knowlton
stated, "We look forward to
delivering three new ultra-premium jackups that will set a new standard
in harsh environment drilling and further high-grade our premium jackup
fleet. Customers have expressed significant interest in the new rig
design that offers unique capabilities and high levels of efficiency.
“We expect to realize significant benefits from the uniform design and
standardization of these jackups as we have with the ENSCO 8500 Series®
ultra-deepwater semisubmersibles. This strategy dramatically
streamlines the construction process and provides sizeable economies of
scale for daily operations, inventory management and training. Ensco and
KFELS have a longstanding relationship and our capital projects team in
Singapore will manage the construction of these newbuild jackups along
with our two remaining ENSCO 8500 Series® rigs.”
All three of the newbuild jackup rigs are enhanced versions of the KFELS
Super A design capable of operating in water depths up to 400' in
harsh environment regions such as the Central North Sea. With
high-temperature, high-pressure equipment, a state-of-the-art cantilever
envelope, 2.5 million pound quad derrick, automated hands-free offline
pipe handling systems, ultra-high capacity jacking and fixation systems,
150 person quarters and strict noise and ergonomic standards, these rigs
feature equipment and capabilities previously found only in the largest
ultra-harsh environment jackups. The versatility of the rigs offers
unprecedented value through increased drilling efficiencies for the most
demanding multi-well platform programs, ultra-deep gas programs and
ultra-long reach wells up to 40,000' total drilling depth in oil and gas
basins throughout the world.
Including the new ultra-premium harsh environment jackup rig announced
today, Ensco has seven newbuild rigs under construction: two drillships,
two ultra-deepwater semisubmersibles and three ultra-premium harsh
environment jackups. Ensco expects these rigs will be delivered on time
and on budget, and will generate significant organic revenue growth.
Ensco will continue to explore opportunities to further high-grade its
fleet through future investments in new equipment.
An option for an additional ultra-premium jackup rig has expired and
will not be exercised. Separately, an option for an additional drillship
has been extended with Samsung to fourth quarter 2011.
Ensco uses its website to disclose material and non-material information
to investors, customers, employees and others interested in Ensco. To
receive regular updates on Ensco news or SEC filings, please sign-up for E-mail
Alerts on the website.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. We have the
world’s second largest offshore drilling fleet comprised of
dynamically-positioned drillships and semisubmersibles, moored
semisubmersibles and premium jackups. Ensco is ranked #1 for overall
customer satisfaction in the leading independent survey conducted by
EnergyPoint Research with #1 ratings in 14 of 16 separate categories. 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 corporate headquarters located at 6 Chesterfield
Gardens, London W1J 5BQ.
Statements contained in this press release that are not historical
facts are forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements include words or phrases such as
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
“project,” “could,” “may,” “might,” “should,” “will” and similar words
and specifically include statements regarding the timing of delivery of
rigs. Such statements are subject to numerous risks,
uncertainties and assumptions that may cause actual results to vary
materially from those indicated, risks inherent to shipyard rig
construction. In addition to the factors described above, you
should also carefully read and consider “Item 1A. Risk Factors” in Part
I and “Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in Part II of our most recent
annual report on Form 10-K, as updated in our subsequent quarterly
reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov
or on the Investor Relations section of our website at www.enscoplc.com.
Each forward-looking statement speaks only as of the date of the
particular statement, and we undertake no obligation to publicly update
or revise any forward looking statements, except as required by law.
Source: Ensco plc