Offshore drilling services provider Ensco has revealed several global contracts in its latest fleet status report, along with its decision to sell several of its rigs for scrap value.
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Image from Ensco. |
Gulf of Mexico
In the Gulf of Mexico, Ensco entered into a contract with Deep Gulf Energy for the ENSCO 8506 semisubmersible from September 2016 until January 2017 at an undisclosed rate.
Japan’s Marubeni exercised its right to terminate its contract early effective August 2016 for the ENSCO 8505 semisubmersible, which was operating at a dayrate in the low US$150,000’s.
Talos Energy inked the ENSCO 75 jackup for work in the GoM from mid-July until September 2016 in the low $40,000’s. The rig will then go to Rooster Energy from November until December 2016, in the mid-$40,000’s.
Also in the GoM, Castex Energy entered into a one-month contract for the ENSCO 87 jackup from September until October 2016 in the low $50,000’s.
Europe
BP has hired the ENSCO 101 jackup for accommodation work offshore the UK until August 2016 at a dayrate in the mid $50,000’s.
Wintershall has also entered into a deal with Ensco for the ENSCO 121 jackup for work offshore Denmark. The rig is contracted in the mid $120,000’s for June-July 2016, with the rate decreasing to the mid $90,000’s in July until August 2016.
Australia
Offshore Australia, Inpex has extended its contract by about 15 months for the ENSCO 5006 semisubmersible. The deal is for a rate decrease to the mid $350,000’s, plus about $125,00 per day amortized through August 2019 for capital upgrades and dayrates during shipyard stay and mobilizations. The contract is expected to end in September 2019.
Chevron has entered into an agreement for the ENSCO 107 jackup in Australia from September 2016 until March 2017 in the high $120,000’s, with an option for an additional six months.
Asia
ConocoPhillips paid a lump sum payment to Ensco for the ENSCO DS-9 drillship for a settlement and release of its ongoing early termination obligations for the rig that was operating offshore Singapore. The amount paid covers the period from May 2016 (when the agreement was signed), through the originally contracted expiration date of 15 July 2017. Ensco expects to recognize revenue of $185 million in Q2 2016.
Ensco revealed it received letter of award for expected work offshore Indonesia from December 2016 until October 2017 for the ENSCO 67 jackup.
Sold for scrap
Ensco said in its July fleet status report that the company sold six of its rigs to undisclosed customers for “scrap value.” The “sale price in line with net book value of rig,” the company said.
The rigs sold include semisubmersibles ENSCO 6003, ENSCO 6004, which were both built in 2004; the 1999 built ENSCO DS-1 and ENSCO DS-2 drillships; and the 1980 built ENSCO 91 and the 1981 built ENSCO 58 jackups.
Preservation stacked and cold stacked
Ensco currently has six rigs that are preservation stacked, in which the company says are taking steps to preserve the rigs, prior to being stacked.
“This may include a quayside power source to dehumidify key equipment and/or provide electrical current to the hull to prevent corrosion. Also, certain equipment may be removed from the rig for storage in a temperature-controlled environment. While stacked, large equipment that remains on the rig is periodically inspected and maintained by Ensco personnel. These steps are designed to reduce time and lower cost to reactivate the rig when market conditions improve,” Ensco said.
The rig provider also has nine jackups cold stacked, in addition to one semisubmersible.
According to the company’s website, Ensco has eight drillships, including one under construction; 11 dynamically-positioned semisubmersibles;
three moored semisubmersibles; 34 premium jackups, including three under construction; two deepwater and one shallow-water managed units; and two drillships two semisubmersibles, and eight jackups held for sale/to be retired.
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