Ensco, Keppel FELS Enter USD 225 Mln Jack-Up Deal

Responding to continued customer demand, Ensco plc has ordered a new premium jackup rig for delivery in early 2015. ENSCO 110, based on the Keppel FELS B Class Bigfoot design, will be constructed under a fixed-price contract with Keppel FELS Limited (KFELS) in Singapore. Including commissioning, systems integration testing and project management, the construction cost is expected to be approximately $225 million.

“The market for premium jackups is very strong and we expect this trend to continue,” said Dan Rabun, Ensco Chairman, President and CEO. “Customer demand is broad-based for high-specification jackup rigs, and this rig can work in virtually every shallow water basin around the world.”

Three active Ensco rigs, ENSCO 106, ENSCO 107 and ENSCO 108, are also based on the KFELS B Class Bigfoot design.

“We are strong proponents of rig standardization, and this latest order is in line with our strategy,” said John Knowlton, Ensco Senior Vice President, Technical. “Design standardization allows us to staff, operate and maintain our rigs more efficiently, and our customers reap the benefits of this through increased reliability.”

The KFELS B Class Bigfoot design is capable of working at water depths up to 400 feet with a maximum drilling depth of 30,000 feet. ENSCO 110 will have a nominal variable deck load of 7,500 kips and a cantilever load of 2,500 kips. It also has a 1.5 million-pound derrick, TDS-8 top drive and 15k BOP. Ensco has customized the rig to add dual drilling fluid capability and to upgrade the living quarters to 6 one-person and 67 two-person rooms.

With this contract, Ensco now has seven newbuild rigs on order, including four jackup rigs and three ultra-deepwater drillships. The two ultra-premium harsh environment jackups and one ultra-deepwater drillship scheduled for delivery in 2013 are all contracted.

“Our ongoing strategy of highgrading our fleet not only creates additional earnings potential for Ensco but contributes to our ability to maintain our number one rating in customer satisfaction and to attract the best employees in the industry,” Rabun added.

ENSCO, April 8, 2013

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