Ensco plc says that a subsidiary of the Company has entered into a 950-day drilling contract with Petrobras for ENSCO 7500, a 5th generation ultra-deepwater semisubmersible drilling rig that has operated for more than 10 years in the major offshore markets of Australia and the U.S. Gulf of Mexico. Following upgrades to the rig at a shipyard in Singapore, ENSCO 7500 is scheduled to commence operations in third quarter 2011. Petrobras may extend the term for up to 950 additional days at mutually agreed rates.

Chairman, President and Chief Executive Officer Dan Rabun commented, "We are very pleased that Petrobras – a leading operator in the deepwater market – has selected ENSCO 7500 for its latest drilling program. Brazil’s deepwater reserves are among the largest in the world and we seek to expand our presence in this growing market.”

The day rate is $320,000 under the new contract, subject to adjustments based on variances in operating costs. In addition, should the rig operate in water depths greater than 1,500 meters, the day rate increases by an additional $200 per meter/per day. Ensco is eligible to receive up to a 5% performance bonus on the day rate and will receive a $19 million fee for mobilization and equipment upgrades.

Tags: ENSCO, Petrobras