Rig: Valaris DS-10

Newbuild Delay

Ensco recently entered into an amendment to the ENSCO DS-10 drillship construction contract (the “Amendment”) with Samsung Heavy Industries (“SHI”), the shipyard constructing the ENSCO DS-10 (“Drillship”). Under the terms of the Amendment: The delivery date for the Drillship has been extended to March 31, 2019 (the “Extended Delivery Date”). Ensco may elect to take delivery of the Drillship earlier upon giving SHI 75 days’ advance notice. Notwithstanding the Extended Delivery Date, SHI agreed to complete construction of the Drillship by March 31, 2017. Payment of $75 million of the approximately $309 million unpaid balance of the purchase price for the Drillship has been deferred to March 31, 2019, or such earlier date as Ensco may elect to take delivery of the Drillship. The remaining $234 million of the purchase price is to be paid in January 2017.

Ensco orders new drillship on back of strong market

Ensco plc has placed an order for an eighth drillship that will be built by Samsung to the yard’s proprietary drillship design. The unit which will be named the ENSCO DS-10, is being built to the GF12000 hull design and will be similar to the DS-8 & DS-9 units that Ensco also ordered from Samsung with a total construction price for the DS-10 unit of US$625 million. The unit is expected to be delivered by the end of Q3 2015 and Ensco has placed the order as the company continues to see strong demand for deep and ultra-deepwater rigs buoyed by increasing exploration activities on a global level coupled with operators demand for units with the most advanced capabilities available.