ENSCO PLC (NYSE:ESV) Reports New Drillship Contract Award

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ENSCO PLC (NYSE:ESV) reported that ultra-deepwater drillship “ENSCO DS-7” received a contract by Noble Energy to complete four production wells and drill two wells at the Leviathan field work in the Mediterranean Sea. This deal is anticipated to start in March 2018 and be closed in December 2018. The deal also comprises four one-well priced consumer options that if fully used would extend the deal into 2020.

The highlights

Carl Trowell, the President and CEO of Ensco, reported that they are delighted to report another notable contract award for one of their high-specification assets. It marks as the fourth drillship contract that the company has received during the third quarter. This contract award and their other recent contract wins support their plan, enhance contracted revenue backlog and boost their initiatives to drive value creation and growth for all Ensco shareholders.

Mr. Trowell added that as contracting activity persists to increase, consumers are showcasing a clear preference for recognized offshore drillers with operational track records, superior technology, broad geographic reach and financial strength. Ensco’s recent contract awards undermine that there is strong consumer demand for the kind of high-specification resources that will be added to company’s fleet through its pending acquisition of Atwood, which will establish a major international offshore drilling firm and better position them as the market recovery cycle develops.

ENSCO DS-7 will be advanced with a second blowout preventer. This advancement, coupled with the dual derricks of rig and other technical specifications, will turn it one of the most efficient assets in the international fleet. As previously reported, this upgrade is anticipated to cost not more $10 million since it will use a blowout preventer presently in inventory. Following its advancement, ENSCO DS-7 will move to the Mediterranean Sea to commence its deal with Noble Energy.

In the last trading session, the stock price of jumped more than 5% to close the day at $5.02.

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