Ensco gets drilling contract for semisubmersible rig

Date : 05/05/2008 @ 4:34PM
Source : TFN
Stock : Ensco International Inc (ESV)
Quote : 61.32  -2.055 (-3.24%) @ 8:00PM
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Ensco gets drilling contract for semisubmersible rig

        DALLAS (AP) - Drilling contractor Ensco International Inc. said Monday that
one of its subsidiaries finalized a drilling contract with Cobalt International
Energy LP for an ultra-deepwater semisubmersible rig currently under
construction.
    The contract calls for operations in the Gulf of Mexico on a two-year
primary term that can be extended to a three or four year term by Cobalt, Ensco
said.
    The aggregate day rate revenue for the base two-year contract term is
expected to be about $372 million. The base operating rate is $510,000 per day,
and the day rate will be subject to adjustment for variances in operating costs
from January 2008 levels, Ensco said.
    Ensco said it will be reimbursed for rig mobilization to the Gulf of Mexico
and any special equipment upgrades requested by Cobalt. Delivery is expected in
late 2010 or early 2011.
    Ensco shares rose 98 cents to $65.51.
    
Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
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