Ensco plc (NYSE: ESV) announced today that it has ordered a new ultra-premium harsh environment jack-up rig to be built under a fixed-price shipyard construction contract with Keppel FELS Limited 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 says it 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 jack-ups that will set a new standard in harsh environment drilling and further high-grade our premium jack-up 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 jack-ups as we have with the ENSCO 8500 Series(R) 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 jack-ups 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 ft 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 jack-ups. Ensco says 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 fttotal drilling depth in oil and gas basins throughout the world.
Including this rig, Ensco now has seven newbuild rigs under construction: two drillships, two ultra-deepwater semisubmersibles and three ultra-premium harsh environment jack-ups. 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 jack-up rig has expired and will not be exercised. Separately, an option for an additional drillship has been extended with Samsung to fourth quarter 2011.
October 6, 2011
Ensco orders ultra-premium jack-up rig at Keppel FELS
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