Offshore rig builder Lamprell has completed the construction of a jack-up drilling rig for the offshore driller Ensco.
Not too long ago, when oil prices were over a $100 a barrel, this would mean the rig would go on a long term contract with an oil company straight out of the yard.
However, this is not the case these days when the oil companies are cutting exploration budgets due to an oversupply in the oil market.
Namely, announcing the rig delivery on Friday, Lamprell said that the “Ensco 141” jack-up would be warm-stacked alongside its sister rig at Lamprell’s stacking facility in Hamriyah, United Arab Emirates.
To remind, Ensco had ordered the LeTurneau Super 116E design rig back in April 2014, a few months before the oil prices would start the drop. According to Ensco’s recent fleet status report, daily warm stacking costs for the Ensco 141 jack-up will be covered by the shipyard for up to two years.
In a statement on Friday, Lamprell said it had a further four new build jack-up rigs under construction at its Hamriyah facility, “which are progressing as planned and will be delivered over the coming 6 months.”
Ensco in October presented its third quarter results. Jack-up revenues were $214 million compared to $326 million in the third quarter 2015, due to fewer rig operating days and a decline in average day rates to $109,000 from $134,000 a year ago. Reported utilization was 55% compared to 64% in third quarter 2015.
Offshore Energy Today Staff