ENSCO Announces Contract for New Ultra-Deepwater Semisubmersible Rig.DALLAS -- ENSCO International ENSCO International is the largest offshore Jack-Up Oil and Gas well drilling corporation [1], with 50 offshore Jack-Up and 5 Semi-submersible drilling rig's servicing domestic US, international, and Scientific drilling markets. Incorporated (NYSE NYSE See: New York Stock Exchange :ESV ESV end-systolic volume. ) announced that a wholly-owned subsidiary of the Company has entered into a drilling contract with two large independent oil companies to provide a new ultra-deepwater semisubmersible sem·i·sub·mers·i·ble n. A seagoing, self-propelled barge that rides at anchor, stands on partially submerged vertical legs on submerged pontoons, and serves as living quarters and a base of operations in offshore drilling. drilling rig, to be named ENSCO 8501. The drilling contract with Nexen Petroleum U.S.A. Inc., a subsidiary of Nexen Inc. (NYSE:NXY NXY Nexen, Inc. (stock symbol) ) and with Noble Energy, Inc. (NYSE:NBL NBL National Basketball League (Australia) NBL National Bicycle League NBL Neutral Buoyancy Laboratory NBL Neuroblastoma NBL New Brunswick Laboratory NBL Not Bloody Likely NBL National Baseball League NBL Nothing But Love ) is for a firm three and a half year primary term, with four one-year extension options at mutually agreed day rates. The term commitment is comprised of a two year obligation by Nexen and a one and a half year obligation by Noble Energy. The aggregate day rate revenue expected to be paid under the contract during the primary term is approximately $423 million. Under the terms of the agreement, ENSCO will also be reimbursed for mobilization and other start-up costs, and day rates will be adjusted for future variances in operating costs. The Company also announced that it entered into an agreement with Keppel FELS FELS Function-Embedded Listening Skills Limited in Singapore to construct ENSCO 8501. The total project cost of ENSCO 8501 is currently expected to be approximately $338 million, with mobilization to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east anticipated by the second quarter of 2009. ENSCO 8501 is the Company's second semisubmersible rig in the 8500 Series, and the Company's third deepwater semisubmersible rig, joining ENSCO 7500, delivered in 2000, and ENSCO 8500, which is expected to be delivered in the second quarter of 2008. The ENSCO 8500 Series deepwater semisubmersibles are an enhanced version of the ENSCO 7500. The 8500 Series rigs will be capable of drilling in up to 8,500 feet of water, and can readily be upgraded to 10,000 feet water-depth capability if required. Enhancements include a two million pound quad derrick, offline pipe handling capability, increased drilling capacity, greater variable deck load, and improved automatic station keeping ability. With these features, the 8500 Series rigs will be especially well-suited for deepwater development drilling. Carl F. Thorne, ENSCO's Chairman and Chief Executive Officer, commented: "We are pleased to have entered into a second transaction of this type in the last few months. As with the ENSCO 8500 project, ENSCO 8501 is expected to provide a cost-effective deepwater drilling solution for our customers and expand ENSCO's deepwater capability on a conservative and financially attractive basis. We are gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. to again be working with Keppel FELS shipyard on the ENSCO 8501. We highly value our longstanding relationship which has resulted in a history of successfully delivering high-quality newbuild rigs on time and within budget." Statements contained in this news release that state Company or management intentions, hopes, beliefs, anticipations, expectations or predictions of future events are forward-looking statements. Such forward-looking statements include references to the expected ENSCO 8500 and ENSCO 8501 delivery dates, the cost of ENSCO 8501, and the anticipated drilling contract revenues for ENSCO 8501. It is important to note that the Company's actual results could differ materially from those projected in such forward-looking statements. The factors that could cause actual results to differ materially from those in the forward-looking statements include the following: (i) delay in the anticipated ENSCO 8500 and ENSCO 8501 delivery dates, (ii) changes in actual cost of ENSCO 8501, (iii) changes in the actual ENSCO 8501 drilling contract revenue or term, (iv) general rig construction risks, (v) risks of rig design and delivery acceptance, (vi) risks associated with shipbuilding in foreign jurisdictions, (vii) force majeure [French, A superior or irresistible power.] An event that is a result of the elements of nature, as opposed to one caused by human behavior. The term force majeure events, (viii) renegotiation, nullification nullification, in U.S. history, a doctrine expounded by the advocates of extreme states' rights. It held that states have the right to declare null and void any federal law that they deem unconstitutional. , or breach of contracts, and (ix) the risks described from time to time in the Company's SEC filings. Copies of such filings may be obtained by contacting the Company or the SEC. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements to reflect any change in Company or management expectations or any change in events, conditions or circumstances on which any such statements are based. ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of offshore drilling rigs servicing the petroleum industry on a global basis. |
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