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Ensco Adds Rig to 120 Series

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Rig giant Ensco plc (ESV - Free Report) has taken delivery of ENSCO 121, the second of four ultra-premium harsh environment jackup rigs in its ENSCO 120 Series from Keppel FELS Limited, a unit of Keppel Corporation Limited.

Constructed at Keppel’s Singapore yard, ENSCO 121 will soon move for Rotterdam in The Netherlands for final load out and crew familiarization before commencing a contract to work early in the second quarter of 2014, in the North Sea. The day rate is estimated at approximately $230,000.

ENSCO 121 is an enhanced version of Keppel’s proprietary KFELS Super A Class design. The rig has been contracted in the North Sea at a day rate of approximately $230,000.

The first rig in the series, ENSCO 120, is under contract in the North Sea. The third rig in the series, ENSCO 122, will be delivered in the third quarter of 2014 and is contracted for North Sea work as well. The fourth rig in the series, ENSCO 123, was ordered by the company in November based on strong customer demand. The rig is scheduled for delivery in the second quarter of 2016.

ENSCO 120 Series rigs are equipped to function in water depths of about 400 feet and can operate in the most demanding large multi-well platform programs, ultra-deep gas programs or ultra-long reach wells having a total drilling depth of about 40,000 feet. The design features of the rigs considerably augment the area of operability in the North Sea and other harsh environment regions.

The other features of these rigs, which were earlier found only in the largest ultra-harsh environment jackup rigs, include significantly improved cantilever envelope, 18-3/4-inch 15k 4-ram BOP, 2.5 million-pound quad derrick, enhanced rig floor layout, fully automated hands-free offline pipe handling systems, ultra-high capacity jacking and fixation systems, 150-person quarters and strict noise and ergonomic standards.

Ensco carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include Harvest Natural Resources Inc. , Parker Drilling Co. (PKD - Free Report) and Tesco Corp. . All these stocks hold a Zacks Rank #1 (Strong Buy).

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