Ensco plc (NYSE: ESV) announces 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.
