LONDON--(BUSINESS WIRE)--
Effective today, ConocoPhillips for its convenience provided a notice of
termination for the three-year ENSCO DS-9 drillship contract. Under the
terms of the contract, ConocoPhillips is obligated to pay Ensco
termination fees monthly for two years equal to the operating day rate
of approximately $550,000, which may be partially defrayed should Ensco
re-contract the rig within the next two years and/or mitigate certain
costs during this time period while the rig is idle and without a
contract. ConocoPhillips is also contractually obligated to reimburse
certain costs that Ensco incurs due to the termination of the contract
for ConocoPhillips’ convenience. Given these contract terms, Ensco does
not anticipate a material negative impact to its financial results for
2015 and 2016 as a result of this termination.
ENSCO DS-9 was recently delivered and had been scheduled to commence its
initial drilling contract for ConocoPhillips in the fourth quarter of
this year.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. For more than 27
years, the company has focused on operating safely and going beyond
customer expectations. Ensco is ranked first in total customer
satisfaction in the latest independent survey by EnergyPoint Research —
the fifth consecutive year that Ensco has earned this distinction.
Operating one of the newest ultra-deepwater rig fleets and the largest
premium jackup fleet, Ensco has a major presence in the most strategic
offshore basins across six continents. 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. To learn
more, visit our website at www.enscoplc.com.
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 involving expected financial
performance and results, including the impact of the ENSCO DS-9
drillship contract termination on our financial results, termination
fees and the reimbursement of those fees to us, re-contracting and/or
reducing costs of rigs whose contracts have been terminated for
convenience, day rates and backlog, estimated rig availability, and
general market, business and industry conditions, trends and outlook.
Such statements are subject to numerous risks, uncertainties and
assumptions that may cause actual results to vary materially from those
indicated, including commodity price fluctuations, customer demand, new
rig supply, downtime and other risks associated with offshore rig
operations, relocations, severe weather or hurricanes; changes in
worldwide rig supply and demand, competition and technology; future
levels of offshore drilling activity; governmental action, civil unrest
and political and economic uncertainties; terrorism, piracy and military
action; risks inherent to shipyard rig construction, repair, maintenance
or enhancement; possible cancellation, suspension or termination of
drilling contracts as a result of mechanical difficulties, performance,
customer finances, the decline or the perceived risk of a further
decline in oil and/or natural gas prices, or other reasons, including
terminations for convenience (without cause); the outcome of litigation,
legal proceedings, investigations or other claims or contract disputes;
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; debt restrictions that may limit our
liquidity and flexibility; our ability to realize the expected benefits
from our redomestication and actual contract commencement dates;
cybersecurity risks and threats; and the occurrence or threat of
epidemic or pandemic diseases or any governmental response to such
occurrence or threat. 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, as updated in its 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.
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Source: Ensco plc