Ensco

(ESV)

said a jackup rig was damaged while preloading offshore Vietnam and will be out of service for 60 days.

The Dallas-based company says repair costs above a $5.5 million deductible will be covered by insurance. It is expected that the rig will move to the Keppel FELS shipyard in Singapore for repairs.

The rig is under contract to Korean National Oil for a seven-well program offshore Vietnam.

The incident is not expected to have a material impact upon Ensco's results of operations, the company said.

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