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Saturday, 30 August, 2008, 11:20 GMT | more prices >>

Ensco rig snags $340m Nexen gig



By Upstream staff 

Dallas drilling contractor Ensco has wrapped up a two-year drilling contract worth about $340 million for its newbuild ultra deep-water semi-submersible rig Ensco 8502 with Nexen in the Gulf of Mexico.

Ensco said the two-year term was extendable to either three or four years by Nexen prior to the start of drilling. The average dayrate would fall slightly in the subsequent quarters.

The contract is expected to start in the second quarter of 2010.

The Ensco 8502 is the third of four ultra deep-water semi-subs now being built at the Keppel Fels shipyard in Singapore. The Ensco 8500 series vessels will join the company’s Ensco 7500 deep-water rig which was delivered in 2000.

The company said the Ensco 8500 rig was on schedule for delivery in the second quarter of 2008, the Ensco 8501 in the first quarter of 2009, the Ensco 8502 in the fourth quarter of 2009 and the Ensco 8503 in the third quarter of 2010.

Ensco chief executive David Rabun said the company had invested a total of $1.5 billion in the 8500 series vessels. He said only the Ensco 8503 rig was seeking a contract. Nexen has also signed a contract for the Ensco 8501 rig.

The rigs will be capable of drilling in up to 8500 feet of water, upgradable to 10,000 feet.


Friday, 21 September, 2007, 16:23 GMT  | last updated: Friday, 21 September, 2007, 16:23 GMT

Workshop: Keppel Fels's shipyard in Singapore
 

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