Ensco to develop ultra deepwater fleet

Ensco International Inc. is adding ultra deepwater semisubmersible drilling rigs to its fleet. Three of the semis are on order at Singapore's Keppel FELS shipyard, said Daniel W. Rabun, president and chief executive, at a press conference held in conjunction with the christening of the $117-million Ensco 108 jackup at Singapore's Keppel FELS shipyard on March 24.

Offshore staff

SINGAPORE -- Ensco International Inc. is adding ultra deepwater semisubmersible drilling rigs to its fleet. Three of the semis are on order at Singapore's Keppel FELS shipyard, said Daniel W. Rabun, president and chief executive, at a press conference held in conjunction with the christening of the $117-million Ensco 108 jackup at Singapore's Keppel FELS shipyard on March 24.

Ensco is investing more than a $1 billion in the three rigs. TheEnsco 8500 is scheduled for delivery in 2Q 2008, the Ensco 8501 will be delivered in 2Q 2009, and the and Ensco 8502 will be ready in 4Q of 2009.

The newbuildEnsco 108 jackup has been contacted for three years to the BP-led consortium developing the Tangguh gas reserves in Indonesia's Bintuni Bay.

Ensco has also signed a three-year contract forEnsco 104 to drill 15 development wells in the Bintuni Bay as well as additional exploration and appraisal wells.

Rabun says upstream activities will remain strong as long as international oil prices remain above $40 a barrel. But he does not see a sharp acceleration in drilling rig day rates, as has been the case for the past 18 months, due to a tight supply of rigs.

3/28/2007

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