Market Overview

Ensco Orders Sixth Ultra-Deepwater Drillship

Responding to the high level of customer demand driven by an ongoing trend of successful offshore discoveries, Ensco plc (NYSE: ESV) has ordered a new advanced-capability, ultra-deepwater drillship to be built at the Samsung Heavy Industries, Co. Ltd. Shipyard in Geoje, South Korea. The vessel, ENSCO DS-8, will be the sixth Samsung DP3 drillship in the Ensco fleet, extending the benefits of Ensco's fleet standardization strategy. It is scheduled for delivery in the third quarter of 2014.

The contract also includes options for two additional drillships of the same design. The fleet expansion will extend Ensco's advantage of operating the newest ultra-deepwater fleet among global drilling contractors.

Including commissioning, systems integration testing, project management and spares, the construction cost is expected to be approximately $645 million. Consistent with the previous five Samsung ultra-deepwater drillships ordered since 2007, 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. New features on ENSCO DS-8 include 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.

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