Ensco has signed up to a five-year drilling contract with BP for the new Ensco DS-6 ultra-deepwater drillship at a rate of about $522,000 per day, plus cost adjustments.
This contract adds more than $1billion to Ensco’s revenue backlog and includes two one-year options at mutually-agreed rates.
The Ensco DS-6 was recently delivered from Samsung Heavy Industries’ shipyard in South Korea and is now undergoing BP requested and funded modifications in Singapore that include the company’s latest enhanced voluntary drilling standards.
Ensco has been receiving a special standby day-rate from BP since the start of February for the duration of the modifications, the scope and total cost of which are being finalised.
Dan Rabun, Ensco chairman, president, and CEO, said: “We are very pleased that BP has chosen to contract the Ensco DS-6. BP is a repeat customer of our Samsung DP3 drillship series, and we commend our crews currently working for BP for their safety record and operational performance, which favourably influenced the contracting for Ensco DS-6.
“The Ensco DS-6 increases the size of our active ultra-deepwater fleet to 10 rigs and reinforces our position of having the newest ultra-deepwater fleet in the world with an average age of just two years.”
Once the modifications are complete, the ship will mobilise to its first well location to complete acceptance testing before starting drilling operations. The mobilisation fee will be paid by BP in a lump sum upon completion of acceptance testing.
Based on current estimates, the ship will start the five-year charter late this year.
It is the fourth of five vessels in the company’s Samsung DP3 drillship series.
The class is equipped with advanced technological features for drilling deepwater wells including DPS-3 certified dynamic positioning, six-ram 15,000psi (pounds per square inch) blow-out preventers; 2million pound hook load, 6,000-barrel active fluid systems, significant storage and deck space, and accommodations for up to 200 persons.
The BOP for the Ensco DS-6 drillship will have double-blind shear rams to meet BP’s specifications.
According to Ensco, its uniform design streamlines construction, operations, inventory management, training, regulatory compliance, repairs, and maintenance. It also provides flexibility for customer-specific enhancements.
In particular, the drillships may be modified to drill and complete wells in water depths to 3,657m (12,000ft).
The Ensco DS-7, currently under construction at Samsung, is scheduled for delivery in the second half of 2013.