The contemplated contract will have an option for the customer to extend the contract at mutually agreed rates and term.
The base operating rate is $510,000 per day, and the day rate will be subject to adjustment for variances in operating costs from current levels. The letter of intent is subject to negotiation and execution of a definitive drilling contract.
Ensco 8503 is the company’s fourth ultra-deepwater semi-submersible rig in the Ensco 8500 Series currently under construction, and will increase Ensco’s deepwater fleet to five rigs inclusive of the Ensco 7500 deepwater semi-submersible rig that has been in service since 2000.
All four of the 8500 Series rigs are under construction by the Keppel FELS shipyard in Singapore, with deliveries expected in the third quarter of 2010 for Ensco 8503.
