DALLAS, Feb. 17 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) announced that a subsidiary of the Company has entered into an
agreement with Keppel FELS Limited in Singapore to exchange three ENSCO rigs
and $55 million of cash for the construction of a new high performance premium
jackup rig. The three rigs to be exchanged are ENSCO 55, a 300' Freide &
Goldman 780 Mod II jackup rig built in 1981, and two Gulf of Mexico platform
rigs, ENSCO 23 and ENSCO 24, built in 1980.
The new premium jackup rig, to be named ENSCO 107, will be an enhanced
KFELS MOD V (B) design modified to ENSCO specifications. The rig is a sister
rig to ENSCO 106, a joint venture project with Keppel FELS, which is currently
under construction in Singapore. ENSCO 106 is expected to be delivered by
year-end, and delivery of ENSCO 107 is expected in late 2005. The transaction
is subject to execution of a definitive construction contract and regulatory
approvals.
Carl Thorne, ENSCO's Chairman and Chief Executive Officer, commented on
the transaction, "The agreement to exchange three older rigs plus cash for
construction of the ENSCO 107 is another step in our continuing fleet renewal
program, and furthers our expansion in the high specification jackup rig
market. ENSCO 55 is our one remaining F&G 780 Mod II jackup rig that has not
been upgraded as part of our fleet enhancement program. ENSCO 23 and ENSCO 24
have been idle for some time, and including them in the transaction furthers
our stated intent of de-emphasizing the more specialized equipment remaining
in our fleet. We believe this transaction is a conservative and cost-
effective approach to upgrading and rationalizing our rig fleet as the
industry continues to evolve to more demanding drilling applications."
Statements contained in this press release that state Company or
management intentions, hopes, beliefs, expectations or predictions of future
events are forward-looking statements. Such forward-looking statements
include references to the timing and cost of construction and delivery of a
new jackup drilling rig and the expected delivery of ENSCO 106. It is
important to note that the Company's actual results could differ materially
from those projected in such forward-looking statements. The factors that
could cause actual results to differ materially from those in the forward-
looking statements include the following: (i) delays in the anticipated
delivery date of the rigs or major rig components, (ii) actual costs
associated with the new rig building program, (iii) rig construction risks,
(iv) risks associated with operating and shipbuilding in foreign
jurisdictions, (v) force majeure events, (vi) renegotiation, nullification, or
breach of contracts, (vii) completion of the definitive contract and receipt
of required regulatory approvals, and (viii) the risks described from time to
time in the Company's SEC filings. Copies of such filings may be obtained by
contacting the Company or the SEC.
The Company disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements to reflect any change
in Company or management expectations or any change in events, conditions or
circumstances on which any such statements are based.
ENSCO, headquartered in Dallas, Texas, provides contract drilling services
to the international petroleum industry.
SOURCE ENSCO International Incorporated
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Related links:
http://www.enscous.com
CONTACT:
Richard LeBlanc of ENSCO International
Incorporated, +1-214-397-3011
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