Newbuild Program Driven by Strong Customer Demand Reinforces Strategy of Fleet Renewal and Standardization
LONDON--(BUSINESS WIRE)-- Responding to continued customer demand, Ensco plc (NYSE: ESV) has ordered a new premium jackup rig for delivery in early 2015. ENSCO 110, based on the Keppel FELS B Class Bigfoot design, will be constructed under a fixed-price contract with Keppel FELS Limited (KFELS) in Singapore. Including commissioning, systems integration testing and project management, the construction cost is expected to be approximately $225 million.
“The market for premium jackups is very strong and we expect this trend to continue,” said Dan Rabun, Ensco Chairman, President and CEO. “Customer demand is broad-based for high-specification jackup rigs, and this rig can work in virtually every shallow water basin around the world.”
Three active Ensco rigs, ENSCO 106, ENSCO 107 and ENSCO 108, are also based on the KFELS B Class Bigfoot design.
“We are strong proponents of rig standardization, and this latest order is in line with our strategy,” said John Knowlton, Ensco Senior Vice President, Technical. “Design standardization allows us to staff, operate and maintain our rigs more efficiently, and our customers reap the benefits of this through increased reliability.”
The KFELS B Class Bigfoot design is capable of working at water depths up to 400 feet with a maximum drilling depth of 30,000 feet. ENSCO 110 will have a nominal variable deck load of 7,500 kips and a cantilever load of 2,500 kips. It also has a 1.5 million-pound derrick, TDS-8 top drive and 15k BOP. Ensco has customized the rig to add dual drilling fluid capability and to upgrade the living quarters to 6 one-person and 67 two-person rooms.
With this contract, Ensco now has seven newbuild rigs on order, including four jackup rigs and three ultra-deepwater drillships. The two ultra-premium harsh environment jackups and one ultra-deepwater drillship scheduled for delivery in 2013 are all contracted.
“Our ongoing strategy of highgrading our fleet not only creates additional earnings potential for Ensco but contributes to our ability to maintain our number one rating in customer satisfaction and to attract the best employees in the industry,” Rabun added.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. For more than 25 years, the company has focused on operating safely and exceeding customer expectations. Ensco is ranked #1 for total customer satisfaction with top honors in 10 of 16 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 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 regarding expected financial performance, day rates and backlog; 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 downtime and other risks associated with offshore rig operations; and possible cancellation or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons. 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, 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.
Sean O’Neill, 713-430-4607
Vice President - Investor Relations and Communications
Nick Georgas, 713-430-4490
Manager - Investor Relations
Alice Brink, 713-430-4658
Manager - Communications
Source: Ensco plc