Press release from Business Wire
Ensco Orders Fourth ENSCO 120 Series Ultra-Premium Harsh Environment Jackup Rig
<p class='bwalignc'> Patented Technology and Standardization Benefit Customers </p>
Wednesday, November 20, 2013
Ensco Orders Fourth ENSCO 120 Series Ultra-Premium Harsh Environment Jackup Rig09:16 EST Wednesday, November 20, 2013
LONDON (Business Wire) -- Ensco plc (NYSE: ESV) is extending its ENSCO 120 Series of ultra-premium harsh environment jackup rigs with the order of ENSCO 123 for delivery in second quarter 2016. The rig will 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 $285 million. The shipyard construction price for the rig is approximately $265 million. The contract with Keppel FELS includes an option for one additional rig of similar design.
Ensco Chairman, President and CEO Dan Rabun stated, “The customer response to our ENSCO 120 Series rigs has been overwhelmingly positive. The first three rigs in the series were contracted well ahead of their delivery dates to three separate customers – each of whom recognizes the advantages of our proprietary design, in particular our patented cantilever technology. We and our customers also benefit from the advantages of standardization, namely operational efficiency, inventory management and training programs. We are already in discussions with customers about multi-year programs for ENSCO 123 and follow-on programs for the other ENSCO 120 Series rigs.”
Mr. Rabun added, “This new investment is consistent with our strategy of adding rigs with unique technology that distinguishes Ensco from its competitors and provides superior returns on investment. We now have seven rigs under construction that will grow earnings and cash flow well into the future.”
ENSCO 120 Series rigs have unique design features, including a patented high-capacity cantilever envelope and a 2.5 million-pound quad derrick that provide significant advantages for drilling wells in harsh environments in up to 400 feet of water to a total drilling depth of 40,000 feet. With high-temperature, high-pressure equipment, automated hands-free offline pipe handling systems, ultra-high capacity jacking and fixation systems, 145-person quarters and strict noise and ergonomic standards, these rigs feature equipment and capabilities previously found only on the largest ultra-harsh environment jackup rigs. These extremely capable and versatile rigs offer customers unprecedented value through increased drilling efficiencies for the most demanding large multi-well platform programs, ultra-deep gas programs and ultra-long reach wells in offshore basins throughout the world.
Ensco plc (NYSE: ESV), an S&P 500 Company, 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 going beyond customer expectations. Ensco is ranked first in total customer satisfaction with top honors in 10 of 16 categories in the latest annual survey by EnergyPoint Research. 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. In terms of dividend yield, Ensco is among the top dividend payers of S&P 500 Companies. 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; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; 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 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 or suspension of drilling contracts as a result of mechanical difficulties, performance or other reasons; 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; 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, 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.
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