Ensco International News

The Kingdom of Bahrain’s Arab Shipbuilding & Repair Yard Co (ASRY) has turned in a profitable first quarter of 2012 despite the continued shipping recession and increased competition in the region. As of the beginning of May ASRY was running at close to capacity and had work in hand for the next 12 weeks. This, says CEO Chris Potter, is quite some achievement in a region which already has plenty of repair capacity, even before two major new repair facilities opened for business recently in Qatar and Oman.

At the 150th Annual Meeting of the Members of ABS, three industry leaders were elected to the ABS Council. Following the Annual Meeting, the ABS Council met and elected industry leaders to both its Marine and Offshore Technical Committees. Individuals serving on the ABS Council and the Technical Committees help guide the class society in fulfilling its mission of promoting the security of life, property and the natural environment. “Classification represents the concept of self-regulation for the marine and offshore industry,” said ABS President and CEO Christopher J. Wiernicki.

Keppel FELS Limited (Keppel FELS) has delivered Ensco 8502, the third of seven Ensco 8500 Series semisubmersible (semi) drilling rigs it has been contracted to build exclusively for Ensco International (NYSE:ESV). Delivered seven days ahead of schedule, Ensco 8502 is on track to commence operations in the U.S. Gulf of Mexico in the second quarter of 2010, under a two-year contract with Nexen Petroleum U.S.A. Inc. with term extension options. The early completion was a culmination of progressive productivity gains achieved by Keppel FELS on the construction of the Series. Construction lead time for Ensco 8502 was reduced by 1.1 million man-hours, as compared to the first rig in the Series. This represents a 15% boost in efficiency.

Gulf Copper has been awarded a contract for the modification of ENSCO 83, a jackup rig owned by a subsidiary of Ensco International (NYSE:ESV). The fifth Ensco rig to enter Gulf Copper’s Galveston shipyard since Hurricane Ike, the ENSCO 83 is undergoing upgrades and refurbishment before it mobilizes from the U.S. Gulf of Mexico to work for PEMEX in Mexico. “Ensco International has played a major role in the post‐Ike restoration of the Galveston economy,” stated Steve Hale, President of Gulf Copper.

USS New Orleans (LPD 18) entered a dry dock in Bahrain April 25 to continue repair work on the ship's hull. The Navy signed a firm fixed-price contract with Arab Shipbuilding and Repair Yard (ASRY) Shipyards in Manama, Bahrain to repair New Orleans. The repair contract includes planning efforts, material procurement, pre-fabrication and dry dock repair work and is expected to be completed in 10 to 14 days. The amphibious transport dock was damaged in a collision with USS Hartford (SSN 768) March 20, 2009. The ship dry docked in ASRY Shipyards Graving dock located in Manama, Bahrain.

Keppel FELS Limited (Keppel FELS) has won the contract to build the seventh ENSCO 8500 Series deepwater semisubmersible (semi) worth $560m. This sum includes equipment specified by the owner. To be delivered in the second half of 2012, the ENSCO 8506 will be the seventh consecutive semi that Keppel FELS is constructing for ENSCO International Incorporated (ENSCO). The contract follows shortly after the award of the sixth semi, ENSCO 8505, that was announced on 1 June 2008. The…

Keppel FELS Limited (Keppel FELS) has won a contract to build a $537m ultra-deepwater semisubmersible (semi) drilling rig from a subsidiary of ENSCO International Incorporated (ENSCO). This contract follows shortly after of the award of the fifth semi, ENSCO 8504, that was announced on May 6, 2008. This latest rig, ENSCO 8505, is the sixth consecutive semi of the ENSCO 8500 Series® that Keppel FELS is constructing, and is scheduled for delivery in the first half of 2012. Keppel FELS has delivered nine new jackup rigs to ENSCO, and is constructing six semis based on ENSCO’s proprietary design.

Oil and Gas Exploration industry alert provided by U.S. Equity News. ENSCO International Incorporated announced recently that its Contract Status of Offshore Rig Fleet Report has been updated as of Monday December 17, 2007. The Report is available on the Company's website at http://www.enscous.com and can be accessed from the home page by clicking on "Rig Contract Status." The Report also can be accessed through the SEC EDGAR System.

As a further effort to strengthen its operational efficiencies, augment its management and succession development opportunities and maximize its financial performance, Halliburton announced several changes to its executive management team. Executive Vice President and Chief Operating Officer Andrew Lane will retire effective Dec. 31, 2007. Halliburton will eliminate the COO position, and the Company’s Eastern and Western Hemisphere presidents as well as the Completion and Production, and Drilling and Evaluation Divisions now will report directly to Dave Lesar, Halliburton’s Chairman of the Board, President and Chief Executive Officer. In addition, the following executive management changes are effective Jan. * Executive Vice President and Chief Financial Officer C.

ENSCO International Incorporated expects that its third quarter earnings per share will be in the range of $.38 to $.42, and that its fourth quarter earnings per share is expected to be in the range of $.25 to $.30. This trend in results is due primarily to a decline in Gulf of Mexico drilling activity. The company also announced that one of its subsidiaries has received notice of Chevron's intent to effect early termination of the ENSCO I, a barge drilling rig under long-term contract with Chevron in Venezuela. Not included in the third quarter earnings estimate given above is approximately $15 million of revenue resulting in a gain of approximately $10 million after tax, or $.07 per fully diluted share, from the early termination of this contract, if finally consummated.

Even before the September 11 terrorist attacks in New York City and Washington, D.C., the offshore market in the Gulf of Mexico had shown signs of weakening. However one shipyard — Atlantic Marine-Mobile — has reported a steady flow of work with the award of several, substantial offshore refurbishment contracts in recent months. The shipyard in Mobile has a long history with the offshore market, but it notes that 2001 has been particularly busy. Semi-submersible and jack-up rigs have occupied the Mobile, Alabama facility throughout 2001. The influx of offshore work includes the following. ENSCO International's jack-up rig ENSCO 68, arrived in Mobile in late March.

Even before the September 11 terrorist attacks in New York City and Washington, D.C., the offshore market in the Gulf of Mexico had shown signs of weakening. However one shipyard - Atlantic Marine-Mobile - has reported a steady flow of work with the award of several, substantial offshore refurbishment contracts in recent months. The shipyard in Mobile has a long history with the offshore market, but it notes that 2001 has been particularly busy. Semi-submersible and jack-up rigs have occupied the Mobile, Alabama facility throughout 2001. The influx of offshore work includes the following. ENSCO International's jack-up rig ENSCO 68, arrived in Mobile in late March.

ENSCO International Incorporated announced that they will install a new communications system onboard all of its Gulf of Mexico jackup rigs. The company will provide VSAT, telephone, fax, broadband internet, data and email services, all through a secure onshore hub facility. C. Christopher Gaut, ENSCO Senior Vice President, commented on the new service, ``We believe this enhanced system will enable us to better meet the communication needs of our customers and other service providers on our rigs. Tom Chapman, ENSCO's Director of Information Technology, continued, ``Telecommunications on a mobile offshore structure presents some difficult challenges. Limited real estate, short well durations, and changes in infrastructure drive up costs for our customers.

ENSCO International said last week that the ENSCO 7500, an ultra-deepwater, semisubmersible rig owned and operated by a wholly owned subsidiary, has returned to work as scheduled after successfully completing hull repairs. The rig is back on a TotalFinaElf drilling location and has resumed earning day rate revenue, under an assignment of a long-term contract with Burlington Resources.

ENSCO International Incorporated and Chiles Offshore Inc. announced that they have signed a definitive merger agreement by which ENSCO will acquire Chiles. The Boards of both companies have approved the transaction. Under the terms of the merger agreement, Chiles' stockholders will receive 0.6575 shares of ENSCO common stock, plus cash of $5.25, for each share of Chiles' common stock. Total value of the transaction is approximately $578 million based on ENSCO's closing price as of May 14, 2002. After giving effect to the transaction and including the Chiles' rig currently under construction, the combined company will have a fleet of 56 offshore drilling rigs, in addition to ENSCO's fleet of 28 Gulf of Mexico oilfield support vessels.

U.S. oil drillers expect weaker or flat first quarter earnings but see revenues picking up later in the year as recent high oil prices trickle down to the service sector. According to sector company executives, the recovery is set to begin in the second half of this year for most, and improve markedly in 2001 as major, independent and national oil firms ramp up oil and gas exploration and production spending. "The year 2000 will be a transition year, the later we get into the year the better things will become...We troughed in the third quarter (1999)," Robert Rose, Chairman, President and CEO of offshore driller Global Marine. "But we have to wait to 2001 before we start having the kind of earnings we had in 1997…

U.S. oil drillers expect weaker or flat first quarter earnings but see revenues picking up later in the year as recent high oil prices trickle down to the service sector. According to sector company executives, the recovery is set to begin in the second half of this year for most, and improve markedly in 2001 as major, independent and national oil firms ramp up oil and gas exploration and production spending. "The year 2000 will be a transition year, the later we get into the year the better things will become...We troughed in the third quarter (1999)," Robert Rose, Chairman, President and CEO of offshore driller Global Marine. "But we have to wait to 2001 before we start having the kind of earnings we had in 1997…

Keppel FELS Limited, the offshore arm of Keppel FELS Energy & Infrastructure Ltd., and ENSCO International Inc. have entered in an alliance agreement to build, own and operate an enhanced KFELS MOD V jack-up rig, with an estimated value of US$130 million. ENSCO 102, respectively. Keppel FELS is responsible for the engineering and building of the rig, while ENSCO provides procurement services and is responsible for the project management during the construction of the rig. ENSCO will have the option to purchase the remaining 75% interest in the rig from Keppel FELS until two years after delivery of the rig. The option price for the period up to the delivery of the rig will be based on the final price payable to Keppel FELS for the construction of the rig.

As the offshore market, particularly in the Gulf of Mexico, continues to heat up, news from Dallas heralds a new era of ensuring safety and efficiency. ENSCO International took delivery of its new semisubmersible ENSCO 7500 from Friede Goldman Halter of Port Arthur, Texas, marking the drilling rig's place in offshore history as the first to complete certificate of inspection requirements under the USCG Alternate Compliance Program (ACP), as facilitated by ABS of Houston. Through the cooperative efforts of the USCG and ABS, ACP certification - initiated in 1995 but to date only used by shipowners - is now available to offshore rigs, said Lynnda Pekel, ABS project manager.

As the offshore market, particularly in the Gulf of Mexico, continues to heat up, news from Dallas heralds a new era of ensuring safety and efficiency. ENSCO International took delivery of its new semisubmersible ENSCO 7500 from Friede Goldman Halter of Port Arthur, Texas, marking the drilling rig's place in offshore history as the first to complete certificate of inspection requirements under the USCG Alternate Compliance Program (ACP), as facilitated by ABS of Houston. Through the cooperative efforts of the USCG and ABS, ACP certification - initiated in 1995 but to date only used by shipowners - is now available to offshore rigs, said Lynnda Pekel, ABS project manager.

Keppel FELS Limited, the offshore arm of Keppel FELS Energy & Infrastructure Ltd., and ENSCO International Inc. have entered in an alliance agreement to build, own and operate an enhanced KFELS MOD V jack-up rig, with an estimated value of US$130 million. ENSCO 102, respectively. Keppel FELS is responsible for the engineering and building of the rig, while ENSCO provides procurement services and is responsible for the project management during the construction of the rig. ENSCO will have the option to purchase the remaining 75% interest in the rig from Keppel FELS until two years after delivery of the rig. The option price for the period up to the delivery of the rig will be based on the final price payable to Keppel FELS for the construction of the rig.

ENSCO International Incorporated and Forest Oil Corporation reported that one of ENSCO's jackup rigs sustained extensive damage while operating in the Gulf of Mexico. ENSCO 51 was on location in Eugene Island Block 273 drilling a development well over a platform (the ``A'' platform) for its customer, Forest, the operator of the block. Eugene Island Block 273 is located approximately 75 miles offshore. Shortly after midnight on Thursday, March 1, approximately fifteen hours after running and cementing a third casing string at approximately 1650 feet, an annular flow was detected. The volume of the gas discharge continued to increase. All personnel were safely evacuated from the rig. Offshore supply vessels equipped with water cannons were dispatched and began to deluge the platform.

ENSCO International Incorporated and Chiles Offshore Inc. announced that the Federal Trade Commission and United States Department of Justice granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for ENSCO's acquisition of Chiles. The termination of this waiting period satisfies a regulatory condition required for the previously announced acquisition. Chiles also announced that its Board of Directors has set July 5, 2002 as the record date for determining stockholders entitled to vote on the transaction with ENSCO, which is subject to stockholder approval at a special meeting of Chiles stockholders to be held on August 7, 2002.