New Ensco Drillship Order Driven by Deepwater Market Strength
ENSCO DS-10 Reflects Robust Customer Demand
Fleet Standardization Remains a Key Strategy
LONDON--(BUSINESS WIRE)-- Ensco plc (NYS: ESV) has ordered an additional advanced-capability DP3 ultra-deepwater drillship based on the Samsung GF12000 hull design. The vessel, ENSCO DS-10, will be the eighth Samsung DP3 drillship in the Ensco fleet, further extending the benefits of Ensco's fleet standardization strategy. It will be built at the Samsung Heavy Industries, Co. Ltd. (SHI) shipyard in South Korea, with delivery scheduled for the third quarter of 2015. The agreement includes an option for an additional drillship of the same design.
ENSCO DS-8 and ENSCO DS-9, also based on the GF12000 hull design, are scheduled for delivery in 2014. Ensco is currently the only drilling contractor offering the advanced features of the GF12000 hull design.
Ensco Chairman, President and CEO Dan Rabun said, "We continue to see very strong demand for rigs in existing deepwater markets, along with growing demand from emerging exploration areas. Operators are also showing high interest in this iteration of the Samsung DP3 drillship, due to its advanced design and capabilities that improve drilling productivity and fuel efficiency - two key factors that affect the operator's project costs."
"We have a track record of providing rigs that allow our customers to improve performance and operate efficiently, and the advances on these most recent drillship orders are again all about helping our customers succeed," Rabun added. "Our strategy of fleet standardization further benefits our customers by providing consistency in systems and operational excellence."
Including commissioning, systems integration testing, project management and tubulars, the construction cost is expected to be approximately $625 million.
Measuring 755 feet in length and 125 feet in width, ENSCO DS-10 will offer a 1,250-ton hoisting system with enhanced offline capability. Like ENSCO DS-8 and ENSCO DS-9, the new unit will have advanced capabilities to meet the demands of ultra-deepwater drilling in water depths of up to 12,000 feet and a total vertical drilling depth of 40,000 feet. It will be initially outfitted to work in water depths up to 10,000 feet.
Features include: retractable thrusters; enhanced safety and environmental features; improved dynamic positioning capabilities; and advanced drilling and completion functionality, including below-main-deck riser storage, triple fluid systems and offline conditioning capability. The drillship also incorporates enhanced client and third-party facilities with living quarters for up to 200 personnel.
A 165-ton active heave compensating construction crane allows for deployment of subsea production equipment without interference with ongoing drilling operations. ENSCO DS-10 includes a 15,000-psi subsea well control system with seven rams and can accommodate a second BOP stack.
Ensco's four active DP3 drillships are currently working in the U.S. Gulf of Mexico, Brazil and West Africa. Three are contracted into 2016 and the fourth is contracted into 2018. A fifth drillship, ENSCO DS-7, scheduled for delivery later in 2013, is contracted to Total into 2016.
Ensco plc (NYS: ESV) 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 exceeding customer expectations. Ensco is ranked #1 for total customer satisfaction, with top honors in 10 of 16 categories in the most recent annual survey by EnergyPoint Research. Operating the world's newest ultra-deepwater fleet and largest fleet of active premium jackups, Ensco has a major presence in the most strategic offshore basins across six continents. 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.
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," "scheduled" and similar words and specifically include statements regarding the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs.Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including risks inherent to shipyard rig construction.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, which is available on the SEC's website atwww.sec.govor on the Investor Relations section of our website atwww.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
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