Chevron hires Ensco drillship for work offshore Nigeria

Chevron Corp. has let a contract to Ensco PLC for its Ensco DS-4 drillship to work offshore Nigeria starting in next year’s first quarter. The single-year contract has five 1-year priced customer options.

Carl Trowell, Ensco chief executive officer and president, said Ensco DS-4 previously was preservation stacked for 2 years. It was reactivated on time and within cost estimates of $28 million total, he said. In addition, $15 million of capital upgrades were added.

“We also secured a 1-year contract for Ensco DS-10, our final newbuild drillship, which is among the most technologically advanced rigs in the global fleet,” Trowell said. Ensco DS-10 will be tested before mobilizing to Nigeria to begin its maiden contract.

Remaining capital expenditures associated with the rig are estimated at $190 million. The client for Ensco DS-10 was not identified.

“We continue to see offshore drillers with track records of safe and efficient operations as well as financial strength win a disproportionate amount of new work,” Trowell said. “These contracts are examples of our recent success in capitalizing on this trend.”

Ensco DS-7 is contracted to Total SA until November. Since November 2016, the rig has been idle, but it now is scheduled to mobilize to Ivory Coast to drill one well starting in August. That well is expected to take 60 days to complete. Additionally, Total has a priced option for one more well.