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.