Ensco lands new jack-up deals while preparing to stack more rigs

UK-based offshore driller Ensco has been awarded several new drilling contracts for its jack-up rigs while also preparing to stack other rigs that remained unemployed. 

According to Ensco’s latest fleet status report on Thursday, the 1981-built jack-up rig drilling rig Ensco 84 has been awarded a contract extension with Saudi Aramco from late December 2016 until August 2021 with a dayrate in the low $70s range.

In addition, the 1982-built jack-up rig Ensco 88 has had its contract extended by Saudi Aramco for three years until December 2019 with a dayrate of mid-60s.

According to the fleet report, the 2010-built semi-submersible Ensco 8503 was contracted to Talos in the U.S. Gulf of Mexico from late September until late October 2016 with an undisclosed dayrate.

Also in the Gulf of Mexico, the 2012-built semi-sub Ensco 8505 was contracted to LLOG from late September until mid-October 2016. Once the Ensco 8505 completes the contract with LLOG, the semi-sub will work for Deep Gulf Energy from November 2016 until late January 2017, replacing the 2012-built semi-sub Ensco 8506 that is being prepared for stacking.

Ensco is also preparing its 2010-built drillship Ensco DS-3 for stacking in Spain.

Early termination

Furthermore, the Ensco DS-7 drillship in Angola recently got a notice of early termination from the French oil company Total with an estimated effective date of late October 2016.

For the first 90 days following the effective date, the daily termination fee is equal to the operating day rate of approx. $585,000. For the remaining term through November 2017, the daily termination fee is equal to approx. $439,000.

Daily termination fees payable by the customer will be defrayed during any period that Ensco contracts the rig to a third party through November 2017. Plus approx. $90,000 per day amortized August 2016 to October 2016 for mobilization and capital upgrades.

More jack-up work

When it comes to Ensco’s jack-up rigs, the oil company Engie has hired the 1981-built jack-up rig Ensco 72 as well as the 2000-built Ensco 101. The rigs will work in the Netherlands from mid-November 2016 until May 2017 and from late October 2016 to mid-April 2017, respectively. The dayrate for the Ensco 72 is in the mid-60s range and for the Ensco 101 mid-70s.

On the other hand, Ensco’s other jack-up, the Ensco 80, has received a rate decrease from Engie to mid-70s from February 2017 to late February 2017. The rig’s current dayrate is in the high 130s range.

The offshore drilling contractor also said that the newbuild jack-up rig Ensco 140 was delivered during the third quarter of 2016 and is now available. The rig is located in the UAE and the daily warm stacking costs are covered by the shipyard for up to two years.

The company’s other rig from the Ensco 140 Series in the UAE, the Ensco 141, is under construction and it is expected to be available in November 2016. Upon delivery, daily warm stacking costs will be covered by the shipyard for up to two years.

The 1978-built jack-up rig Ensco 67 has been contracted to Pertamina in Indonesia from December 2016 until December 2017 with a dayrate of low 50s. The rig also has one 1-year priced option.

The 1982-built jack-up rig Ensco 53, previously cold stacked in the UEA, is now for sale.

Finally, the jack-up rig Ensco 94 is classified for sale as of November 2016 as its contract with Saudi Aramco has been transferred to Ensco 84.

Offshore Energy Today Staff