Given rising customer demand, Ensco plc has exercised one of two options for an additional advanced-capability DP3 ultra-deepwater drillship based on the Samsung GF12000 hull design. The vessel, ENSCO DS-9, will be the seventh Samsung DP3 drillship in the Ensco fleet, extending the benefits of Ensco's fleet standardization strategy. It will be built at the Samsung Heavy Industries, Co. Ltd. (SHI) Shipyard in South Korea, with delivery scheduled for the fourth quarter of 2014.
“Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations”
On 5 April, Ensco announced its order for ENSCO DS-8, the first drillship based on the GF12000 hull design. This fleet expansion will extend Ensco's advantage of operating the newest ultra-deepwater fleet among global drilling contractors. The latest independent customer satisfaction survey conducted by EnergyPoint ranks Ensco #1 in Deepwater Drilling.
Chairman, President and CEO Dan Rabun said, "Our decision to order two ultra-deepwater drillships over the past three months is predicated on detailed analysis of several important factors. Customer demand has continued to rise and has become even more broad-based due to new discoveries in emerging basins. The near-term supply of deepwater rigs is limited and we believe supply-demand dynamics will continue to support favorable day rates, which have risen sharply over the past year. Significant interest in our latest-design drillships gives us confidence that customers recognize the technological advantages of our drillships relative to competitors and the benefits we provide from rig standardization. Finally, the delivery schedule and financing terms support favorable returns for these incremental investments in our fleet."
Including commissioning, systems integration testing, project management and spares, the construction cost is expected to be comparable to the amount recently announced for ENSCO DS-8 of approximately $645 million. Like ENSCO DS-8, the new unit will have advanced capabilities to meet the demands of ultra-deepwater drilling in water depths of up to 12,000 feet and a total vertical drilling depth of 40,000 feet, plus retractable thrusters; enhanced safety and environmental features; improved dynamic positioning capabilities; and advanced drilling and completion functionality, including below-main-deck riser storage, triple fluid systems, offline conditioning capability and enhanced client and third-party facilities.
The new drillship is based on the proprietary Samsung GF12000 hull design measuring 755 feet in length and 125 feet in width. It will offer a payload in excess of 22,000 metric tons and a 1,250-ton hoisting system. The rig's design and capabilities include numerous features that increase operating efficiency. Primary to these capabilities are enhanced and redundant offline tubular stand building features and a 165-ton active heave compensating construction crane, allowing for the deployment of subsea production equipment without interference with ongoing drilling operations. The rig, which will be initially outfitted for drilling in water depths of up to 10,000 feet, will be equipped with dynamic positioning in compliance with DP3 certification; six-5.5 megawatt thrusters for enhanced station-keeping; expanded drilling fluids capacity; a 15,000-psi subsea well control system with six rams, upgradable to seven rams and/or a second BOP stack; burner boom for well testing; and living quarters for up to 200 personnel.
Ensco's three active DP3 drillships are currently contracted into 2016 in the U.S. Gulf of Mexico, Brazil and West Africa. A fourth, ENSCO DS-6, is undergoing pre-commissioning modifications in preparation for its first well assignment under a five-year contract with BP. ENSCO DS-7 and ENSCO DS-8 are scheduled for delivery in the second quarter of 2013 and third quarter of 2014, respectively. Ensco has one remaining option for an additional drillship.
Ensco plc (NYSE: ESV) brings energy to the world as a global provider of offshore drilling services to the petroleum industry. For 25 years, the company has focused on operating safely and exceeding customer expectations. Ensco is ranked #1 for total customer satisfaction and received top honors in 12 of 16 other categories in the most recent annual survey by EnergyPoint Research. Operating the world's newest ultra-deepwater fleet and largest fleet of active premium jackups, Ensco has a major presence in the most strategic offshore basins across six continents. Ensco plc is an English limited company (England No. 7023598) with its registered office and corporate headquarters located at 6 Chesterfield Gardens, London W1J 5BQ.
Ensco uses its website (www.enscoplc.com) to disclose material and non-material information to investors, customers, employees and others interested in the company. To receive regular updates on Ensco news or SEC filings, please sign-up for Email Alerts on the company's website.
Statements contained in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "could," "may," "might," "should," "will" and similar words and specifically include statements regarding the timing of delivery, mobilization, contract commencement, relocation or other movement of rigs. Such statements are subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated, including risks inherent to shipyard rig construction. In addition to the numerous factors described above, you should also carefully read and consider "Item 1A. Risk Factors" in Part I and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our most recent annual report on Form 10-K, which is available on the SEC's website at www.sec.gov or on the Investor Relations section of our website at www.enscoplc.com. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements, except as required by law.