Marathon Oil has awarded a five-month contract to Ensco for the use of its Ensco 8502 deepwater semi-submersible for work from the middle of next month through mid-February at a day rate of $530,000.
The Ensco 8502 is currently working for LLOG in the US Gulf, where the rig is drilling a well at the Neidermeyer North Field in Mississippi Canyon block 208.
Following its five-month stint with Marathon, the rig will go to Stone Energy for a contract through mid-September next year.
Ensco also reports in its fleet update that the drillship Ensco DS-2 has received a contract extension from Total that starts next month and runs for a year at around $430,000, which is lower than anticipated.
Barclays Capital analyst James West has warned that the rate fall for the DS-2 is worrying on two counts: a possible early indication that non new-build ultra-deepwater rates are in the early stages of collapsing, and that it implies further delays and impediments are developing in Angola, a key deepwater basin and one which is key to Total.
“The current ultra-deepwater fleet continues to remain sold out; however, questions are growing about potential day rate softness as the market looks to absorb over 30 uncontracted new-builds set for delivery in the coming two years,” West said in a statement.