Once rig acceptance procedures have been completed in the US Gulf of Mexico, ENSCO 8503 will mobilize to offshore French Guiana to commence drilling operations for a subsidiary of Tullow Oil on behalf of itself and its coventurers in the license (Shell, Total, and Northpet Investments).
Acceptance procedures will be witnessed jointly by Tullow and Cobalt International Energy, the original customer for ENSCO 8503.
Mobilization to offshore French Guiana is scheduled to begin in early 2011, and the combined mobilization and demobilization will be approximately 50 days in total and drilling operations in French Guiana are estimated to be up to three months in duration.
The day rate under the sublet agreement is approximately $440,000, and the mobilization and demobilization rate is about 75% of the day rate.
Following the sublet period, which ends upon completion of demobilization back to the US Gulf of Mexico, the rig will resume its contract with Cobalt.
The two-year term under the original ENSCO 8503 drilling contract with Cobalt will not be reduced by the sublet period.
