U.K.-based offshore drilling contractor Ensco plc (ESV) has ordered its fourth ultra-premium harsh environment jackup rig from the ENSCO 120 Series. The rig is estimated to cost $285 million.
The cost includes commissioning, systems integration testing and project management. Shipyard construction price for the rig is estimated at $265 million.
The rig has been contracted to Keppel FELS Limited in Singapore under a fixed-price shipyard construction contract and includes the option for an additional rig of similar design.
The rig – scheduled for delivery in the second quarter of 2016 – was ordered in view of the strong demand for the premium rigs. Among the other three rigs previously ordered, one has been delivered while the other two are under construction.
All the three rigs have been contracted to three separate customers. Currently, Ensco is in talks with customers regarding multi-year programs for the latest rig as well as potential extension for the other units.
The rigs are equipped with a high-capacity cantilever and 2.5 million-pound quad derrick, with competence to operate in water depths of about 400 feet and drilling capability of 40,000 feet.
The newbuild rigs include features and capabilities that were earlier found only in the largest ultra-harsh environment jackup rigs. The rigs offer customers with unique value through improved drilling efficiencies for the most demanding large multi-well platform programs, ultra-deep gas programs and ultra-long reach wells in offshore basins throughout the world.
Ensco is likely to have seven newbuild rigs in addition to it fleet by 2015. Of these, three ultra-deepwater drillships have been ordered at South Korea's Samsung Heavy Industries.
Ensco carries a Zacks Rank #3 (Hold). However, there are other sector stocks – SM Energy Company (SM), Western Gas Partners LP (WES) and Abraxas Petroleum Corp. (AXAS) – that hold a Zacks Rank #1 (Strong Buy) and are worth buying now.
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