$522,000 Day Rate for Five-Year Term
More Than $1 Billion Added to Revenue Backlog
LONDON--(BUSINESS WIRE)--
Ensco plc (NYSE: ESV) announced today that it has entered into a
five-year term drilling contract with BP for the new ENSCO DS-6
ultra-deepwater drillship at a rate of approximately $522,000 per day,
plus cost adjustments. The contract adds more than $1 billion to Ensco’s
revenue backlog. In addition, the contract includes two one-year options
at mutually agreed rates.
ENSCO DS-6 recently was delivered from Samsung Heavy Industries’
shipyard in South Korea and is now undergoing BP requested and funded
modifications in Singapore that include BP’s latest enhanced voluntary
drilling standards. Ensco has been receiving a special standby day rate
from BP since 1 February while this work is being completed. The scope
and total cost of these modifications and upgrades are in the process of
being finalized.
Chairman, President and Chief Executive Officer Dan Rabun commented, “We
are very pleased that BP has chosen to contract ENSCO DS-6. BP is a
repeat customer of our Samsung DP3 drillship series and we commend our
crews currently working for BP for their safety record and operational
performance, which favorably influenced the contracting for ENSCO DS-6.”
Mr. Rabun added, “ENSCO DS-6 increases the size of our active
ultra-deepwater fleet to 10 rigs and reinforces Ensco’s position of
having the newest ultra-deepwater fleet in the world with an average age
of just two years.”
Upon completion of the modifications, the rig will mobilize to its first
well location to complete acceptance testing before commencing drilling
operations. The mobilization fee will be paid by BP in a lump sum upon
completion of acceptance testing.
Based on current estimates, ENSCO DS-6 is scheduled to commence the
five-year term contract in late fourth quarter 2012. Collectively, the
modifications, mobilization fee and special standby day rate will be
amortized over the primary five-year contract term.
ENSCO DS-6 is the fourth of five rigs in the Company’s Samsung DP3
drillship series. Ensco anticipates significant benefits from
standardization for these rigs as it has with the ENSCO 8500 Series®
ultra-deepwater rigs, Megathyst semisubmersibles and Keppel FELS premium
jackups.
The Samsung DP3 ultra-deepwater drillships are equipped with advanced
technological features for drilling deepwater wells including DPS-3
certified dynamic positioning, six ram 15,000 psi BOPs, two million
pound hook load, 6,000-barrel active fluid systems, significant storage
and deck space, and accommodations for up to 200 persons. The BOP for
the ENSCO DS-6 drillship will have double-blind shear rams to meet BP’s
specifications.
The uniform design of the company’s Samsung DP3 drillship series
streamlines construction, operations, inventory management, training,
regulatory compliance, repairs and maintenance. It also provides
flexibility for customer-specific enhancements: in particular, the
drillships may be modified to drill and complete wells in water depths
up to 12,000’.
ENSCO DS-7, the fifth rig in the Company’s Samsung DP3 drillship series,
is currently under construction in South Korea with delivery scheduled
for the second half of 2013.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. For 25 years, the
company has focused on operating safely and exceeding customer
expectations. Ensco is ranked #1 for total customer satisfaction and
received top honors in 12 of 16 other categories in the most recent
annual survey by EnergyPoint Research. Operating the world’s newest
ultra-deepwater fleet and largest fleet of active premium jackups, Ensco
has a major presence in the most strategic offshore basins across six
continents. Ensco plc (www.enscoplc.com)
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 expected financial
performance, day rates and backlog, as well as the timing of delivery,
mobilization, contract commencement, relocation or other movement of
rigs. Such statements are subject to numerous risks,
uncertainties and assumptions that may cause actual results to vary
materially from those indicated, including downtime and other risks
associated with offshore rig operations, relocations, severe weather or
hurricanes; governmental action, civil unrest and political and economic
uncertainties; terrorism, piracy and military action; risks inherent to
shipyard rig construction; possible cancellation or suspension of
drilling contracts as a result of mechanical difficulties, performance
or other reasons; governmental regulatory, legislative and permitting
requirements affecting drilling operations; our ability to attract and
retain skilled personnel on commercially reasonable terms; environmental
or other liabilities, risks or losses; and actual contract commencement
dates. In addition to the numerous 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, which is 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