Ensco secures drilling contract from Chevron in Indonesia

Ensco secures drilling contract from Chevron in Indonesia

Ensco, a UK-based offshore drilling contractor, has received a contract award for one of its drilling rigs from Chevron in Indonesia.

According to Ensco’s February fleet status report, the 2011-built, deepwater, semi-submersible drilling rig Ensco 8504 is currently mobilizing to Indonesia. The rig will operate for Chevron from late March until early July 2016.

Lump sum fee of approximately $8 million for mobilization, acceptance testing and rig load out are to be amortized over primary contract term, Ensco said.

Furthermore, Ensco’s 1982-built semi-submersible rig Ensco 5005 was contracted by Petronas Carigali in Brunei from late December 2015 to late February 2016, with a dayrate of $110,000.

The jack-up drilling rig Ensco 75 has been contracted by Fieldwood until January 2017. The rig will be operating in the U.S. Gulf of Mexico at various dayrates between mid 40s and mid 50s depending on scope of work.

Another jack-up drilling rig, the Ensco 102, has been contracted by GDF in the UK for accommodation work from mid-December 2015 to mid April 2016, plus four one-month priced options. The rig is operating with a mid-50s dayrate.

Furthermore, BP in the UK has exercised its option and rate decreased to low 100s for the jack-up Ensco 101. The options is from mid-February till July 2016. This is includes plus one six-month unpriced option.

Newbuild jack-up delayed

In its fleet status report, Ensco also said it has deferred delivery of its newbuild jack-up rig Ensco 123 by 19 months. The rig is being built by Keppel FELS shipyard in Singapore and it is now scheduled to be delivered in the first quarter of 2018.

In July 2015, ConocoPhillips terminated a contract for Ensco’s drillship DS-9. Under the terms of the contract, the customer is obligated to pay Ensco early termination fees for two years equal to the operating day rate (approximately $550,000).

The drilling contractor now informed that this amount will be reduced pursuant to Ensco’s obligation to mitigate idle rig costs, such as manning and maintenance activity, while the rig is idle and without a contract. Ensco said it was in discussions with the customer on the amount of this reduction. Operating day rate may also be defrayed if Ensco re-contracts the rig.

Ensco also reported that the jack-up rig Ensco 86 has been cold stacked in the U.S. Gulf of Mexico, while the semi-submersible drilling rig Ensco 5001, built in 1974, was sold in the fourth quarter of 2015 for $2 million.

When it comes to Ensco’s rigs in Saudi Arabia hired by Saudi Aramco, Ensco said it was in discussions with the customer for operating rate for six of its jack-up rigs, Ensco 54, Ensco 76, Ensco 88, Ensco 94, Ensco 96, and Ensco 97.

Offshore energy Today

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