Chevron contracts ENSCO 7500

A subsidiary of Ensco International has entered into a drilling contract with Chevron Australia for the utilization of the semisubmersible ENSCO 7500, which is currently operating in the Gulf of Mexico.

Offshore staff

DALLAS -- A subsidiary of Ensco International has entered into a drilling contract with Chevron Australia for the utilization of the semisubmersible ENSCO 7500, which is currently operating in the Gulf of Mexico.

The rig is expected to complete its current contract with Chevron USA in September 2008 and then mobilize to west Australia to begin operations under the new contract by the end of the year. The current day rate of $365,000 will apply during the mobilization period.

The operating rate under the new contract is $550,000 per day, and will be subject to adjustment for variances in operating costs. The initial term of the contract, which runs until Aug. 31, 2010, can be extended by Chevron Australia for one or two additional years at the same rate if the option to extend is exercised by Sept. 1, 2009, or at mutually agreed rates if the option is exercised thereafter, the company says.

08/29/2008

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