Ensco Terminates Rig Contract With Petrosucre

The company said it will likely fully reserve the $16.9 million net receivable and write off a $4.8 million deferred tax asset, prompting reduced second-quarter earnings expectations. Ensco added that it is pursuing an insurance claim under its package policy and is pursuing legal remedies for damages related to ENSCO 69.

Meanwhile Ensco on Monday released other news that a subsidiary has taken delivery of ENSCO 8501, the second of its seven ultra-deepwater semisubmersible rigs being constructed by Keppel FELS Ltd. in Singapore. Soon the rig will begin a 50-day mobilization to the U.S. Gulf of Mexico for deep sea testing and final outfitting before it starts its three and a half year term drilling contract with a subsidiary of Nexen and Noble Energy. The company said drilling operations will likely begin in mid-October.

Shares of the company fell 96 cents to $37.69.