LONDON--(BUSINESS WIRE)--Ensco plc (NYSE: ESV) announced today that ultra-deepwater drillship ENSCO DS-7 has been awarded a contract by Noble Energy to drill two wells and complete four production wells at the Leviathan field development in the Mediterranean Sea. This contract is expected to commence in March 2018 and be completed in December 2018. The contract also includes four one-well priced customer options that if fully exercised would extend the contract into 2020.
Chief Executive Officer and President Carl Trowell said, “We are pleased to announce another significant contract award for one of our high-specification assets – our fourth drillship contract awarded during the third quarter. This award and our other recent contract wins validate our strategy, increase contracted revenue backlog and advance our efforts to drive growth and value creation for all Ensco shareholders.”
Mr. Trowell concluded, “As contracting activity continues to increase, customers are demonstrating a clear preference for established offshore drillers such as Ensco with operational track records, financial strength, superior technology and broad geographic reach. Our recent contract awards underscore that there is strong customer demand for the type of high-specification assets that will be added to Ensco’s fleet through our pending acquisition of Atwood, which will create a leading global offshore drilling company and better position us as the market recovery cycle unfolds.”
ENSCO DS-7 will be upgraded with a second blowout preventer. This upgrade, combined with the rig’s dual derricks and other technical specifications, will make it one of the most capable assets in the global fleet. As previously announced, this upgrade is expected to cost less than $10 million since it will utilize a blowout preventer currently in inventory. Following its upgrade, ENSCO DS-7 will mobilize to the Mediterranean Sea to begin its contract with Noble Energy.
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Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. For 30 years, the Company has focused on operating safely and going beyond customer expectations. Ensco is ranked first in total customer satisfaction in the latest independent survey by EnergyPoint Research — the seventh consecutive year that Ensco has earned this distinction. Operating one of the newest ultra-deepwater rig fleets and a leading premium jackup fleet, 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 corporate headquarters located at 6 Chesterfield Gardens, London W1J 5BQ. To learn more, visit our website at www.enscoplc.com.
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” and similar words and specifically include statements involving expected financial performance; effective tax rate, day rates and backlog; estimated rig availability; rig commitments and contracts; contract duration, status, terms and other contract commitments; letters of intent; scheduled delivery dates for rigs; the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs; our intent to sell or scrap rigs; and general market, business and industry conditions, trends and outlook. In addition, statements included in this press release regarding the proposed acquisition of Atwood and the anticipated benefits, opportunities, timing and effects of the transaction are forward-looking statements. The forward-looking statements contained in this press release are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including actions by regulatory authorities, rating agencies or other third parties; actions by our security holders and the security holders of Atwood; costs and difficulties related to the integration of Atwood; delays, costs and difficulties related to the acquisition of Atwood; Ensco’s financial results and performance following the completion of the Atwood transaction; satisfaction of closing conditions related to the Atwood transaction; our ability to repay debt and the timing thereof; availability and terms of any financing; commodity price fluctuations, customer demand, new rig supply, downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; changes in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action, civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction, repair, maintenance or enhancement; possible cancellation, suspension or termination of drilling contracts as a result of mechanical difficulties, performance, customer finances, the decline or the perceived risk of a further decline in oil and/or natural gas prices, or other reasons, including terminations for convenience (without cause); the cancellation of letters of intent or any failure to execute definitive contracts following announcements of letters of intent; the outcome of litigation, legal proceedings, investigations or other claims or contract disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions that may limit our liquidity and flexibility; and cybersecurity risks and threats. 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, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov or on the Investor Relations section of our website at www.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.