ENSCO International Announces Construction of Sixth New Ultra-Deepwater Semisubmersible Rig

Business Wire,  May 30, 2008  

Tags: ENSCO International

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DALLAS -- ENSCO International Incorporated (NYSE: ESV) reported that one of its subsidiaries has finalized the construction contract for an ultra-deepwater semisubmersible rig to be named ENSCO 8505. The contract for construction of the rig was entered into with Keppel FELS Limited (Keppel FELS) Shipyard in Singapore at a total project cost currently projected to be $537 million. Delivery is expected in the first half of 2012.

ENSCO 8505 is the Company's sixth ultra-deepwater semisubmersible rig in the ENSCO 8500 Series([R]) currently under construction, and will be part of the Company's seven-rig deepwater fleet that includes the ENSCO 7500 which has been in service since 2000. Four of the ENSCO 8500 Series([R]) rigs are now contracted to customers for term work commencing upon delivery.

The ENSCO 8500 Series([R]) deepwater semisubmersibles are enhanced versions of ENSCO 7500, and are based upon an ENSCO proprietary design. Enhancements include a two million pound quad derrick, offline pipe handling capability, increased drilling capacity, improved automatic station keeping ability and larger living quarters. The 8500 Series rigs will be capable of drilling in up to 8,500 feet of water. With these capabilities and features, the rigs will be especially well-suited for deepwater development drilling.

Daniel W. Rabun, ENSCO's Chairman, President and Chief Executive Officer, commented: "We expect demand for ultra-deepwater equipment will continue to grow, and that expansion of our 8500 Series deepwater fleet offers an attractive opportunity to participate in this important market. We are excited about the opportunity to again work with Keppel FELS as we pursue a prominent position in deepwater drilling."

Statements contained in this news release that state the Company's or management's intentions, hopes, beliefs, expectations, anticipations, projections or predictions of the future are forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include references to the expected delivery date and cost of ENSCO 8505. 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) delay in the anticipated ENSCO 8505 delivery date, (ii) changes in actual cost of the rig, (iii) general rig construction and design risks, (iv) risks of commissioning and delivery acceptance, (v) risks associated with shipbuilding in foreign jurisdictions, (vi) force majeure events, (vii) renegotiation, nullification, or breach of contracts, and (viii) other risks described from time to time as Risk Factors and otherwise in the Company's SEC filings. Copies of such SEC filings may be obtained at no charge by contacting our investor relations department at 214-397-3045 or by referring to the investor relations section of our website at http://www.enscous.com.

All information in this press release is as of May 30, 2008. The Company undertakes no duty to update any forward-looking statement, to conform the statement to actual results, or reflect changes in the Company's expectations.

ENSCO, headquartered in Dallas, Texas, owns and operates a modern fleet of offshore drilling rigs servicing the petroleum industry on a global basis.

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