Drilling major Ensco has once again reached for its wallet to order further drilling tonnage, this time two high-specification jack-ups already designated Ensco 140 and 141. Price tag is $430million for the pair.
Options could double the order to four rigs costing $860million.
With this new order, Ensco now has eight new-build rigs under construction: five premium jack-ups and three ultra-deepwater drillships.
Both the 140 and 141 will incorporate Ensco’s patented Canti-Leverage Advantage technology, and are described as significantly enhanced versions of the LeTourneau Super 116E jack-up design.
The new units are to incorporate design specifications necessary to fully comply with the vast majority of regulatory and customer requirements in the Middle East, the primary target market for the new duo.
They are scheduled for delivery in mid-2016 from Lamprell’s newest shipyard located in the United Arab Emirates.
Ensco says the latest units will also be suitable for most of the markets around the world outwith the Middle East.
They will also continue the company’s drive for maximum strategic standardisation since the equipment package specified matches much of the proven technology used across the company’s current premium jack-up fleet – now the largest in the world.
The 140 and 141 will be constructed under a fixed-price contract. Including commissioning, systems integration testing and project management.
“Over the past three years, we have successfully contracted our Ensco 120 Series newbuild jack-up rigs well ahead of delivery based on the advantages of our proprietary technology,” said Dan Rabun, chairman, president and CEO.
“While we recognise that many new-build rigs are entering the market, we believe our new Ensco 140 and Ensco 141 jack-ups will attract significant customer interest.”
Besides the cantilever system, other key features of the Super 116E rig design include a dual-drilling fluid system, a 1.5million-pound derrick, TDS-8 top drive and a 15,000 psi-rated blow-out preventer.
These latest rigs will initially be outfitted to work in water depths to 104m (340ft) and may be upgraded to operate in depths to 122m (400ft). They will be capable of drilling to a maximum total depth of 9,144m (30,000m).
Since the beginning of 2010, Ensco has taken delivery of 12 high-performance rigs, including two 120-Series ultra-premium harsh environment jack-ups, five Samsung DP3 ultra-deepwater drillships and five 8500-Series ultra-deepwater semi-submersibles.
During this same period, the company has divested 13 less capable rigs as part of its continuous high-grading strategy. Proceeds from these sales have been used to fund new-build orders.
Meanwhile, there is also clear evidence emerging that the market for ultra-deepwater drilling tonnage is softening, judging from Ensco’s latest rig status report.
That shows that the Ensco 8505 semi- has picked up a nine-month package of work from Deep Gulf Energy, at a day-rate nearly 25% less than the $495,000 it now receives from Anadarko.
This is a marked change from the multi-year premium deals that have characterised the top end of the market for the past several years.
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