DALLAS, March 7 /PRNewswire-FirstCall/ -- ENSCO International Incorporated
(NYSE: ESV) announced that one of its principal subsidiaries ("ENSCO") has
agreed upon terms for a joint venture with Keppel FELS Limited to acquire, for
$26.25 million in cash and project management services, a 25% ownership
interest in a new high performance premium jackup rig to be constructed by
Keppel FELS in Singapore, and expects to execute and deliver definitive
agreements shortly. The rig, to be named the ENSCO 106, will be an enhanced
KFELS MOD V (B) design, modified to ENSCO specifications, capable of
addressing more demanding applications on a global basis. The enhanced design
will be designated as the "BIGFOOT"(TM).
The total agreed cost of the rig will be approximately $105 million. In
addition to its initial 25% ownership, ENSCO will have an option to purchase
the remaining 75% interest in the rig prior to delivery and for two years
after delivery. The option price will be based on the agreed cost until rig
delivery, and thereafter will be subject to modest escalation during the two-
year option period. Following delivery, which is expected in the first
quarter of 2005, ENSCO will market, manage and operate the rig under charter
from the joint venture.
Carl Thorne, ENSCO's Chairman and Chief Executive Officer, commented on
the transaction, "This joint venture with Keppel FELS is in keeping with our
commitment to improve our presence in the premium jackup market in a very
disciplined and conservative manner, much as we have done with the ENSCO
102 joint venture. The ENSCO 106 will address the heart of the premium jackup
market in a cost effective manner, similar to our philosophy with the ENSCO
7500 semisubmersible rig relative to the deepwater market. As drilling
requirements become more stringent and fleet renewal becomes imperative, we
believe balance between capability and cost will be crucial. We are confident
that the BIGFOOT(TM) design will optimize our philosophical criteria, and are
most pleased that Keppel FELS has again agreed to be our partner in this
project. ENSCO's initial 25% ownership in the rig will limit present
exposure, and the purchase option will continue to offer the flexibility to
add to the capability of our jackup fleet, at a very attractive cost, while
continuing to reduce the average age of our overall fleet."
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 for construction and delivery of a
new jackup drilling rig. 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, (ii) actual costs associated with the new
build program, (iii) operational risks and insurance, (iv) risks associated
with operating and shipbuilding in foreign jurisdictions, (v) force majeure
events, (vi) renegotiation, nullification, or breach of contracts, and (vii)
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 and
marine transportation 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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