Ensco plc (NYSE: ESV) said its ultradeepwater drillship, ENSCO DS-7, was awarded a contract by Noble Energy (NYSE: NBL) to drill two wells and complete four production wells at the Leviathan field development in the Mediterranean Sea, on Aug. 21.
The contract is expected to commence in March 2018 and be completed in Dec. 2018. The contract also includes four one-well priced customer options that if fully exercised would extend the contract into 2020.
“We are pleased to announce another significant contract award for one of our high-specification assets – our fourth drillship contract awarded during the third quarter,” CEO and President Carl Trowell said.
“This award and our other recent contract wins validate our strategy, increase contracted revenue backlog and advance our efforts to drive growth and value creation for all Ensco shareholders,” Trowell said.
ENSCO DS-7 will be upgraded with a second blowout preventer. This upgrade, combined with the rig’s dual derricks and other technical specifications, will make it one of the most capable assets in the global fleet. The upgrade is expected to cost less than $10 million since it will utilize a blowout preventer currently in Ensco’s inventory.
Following its upgrade, ENSCO DS-7 will mobilize to the Mediterranean Sea to begin its contract with Noble Energy.