ERHC Energy Inc (ERHE)

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Ensco Gets $385 Million Rig Contract

.c The Associated Press

DALLAS (AP) - Offshore drilling contractor Ensco International Inc. said Thursday it received a $385 million contract to provide a group of oil companies with a new version of its ultra-deepwater semisubmersible drilling rig.

Anadarko Petroleum Corp., Dominion Resources Inc. and Kerr-McGee Corp. signed on for a four-year primary term, along with the option to extend the contract for another four years. The $385 million figure covers the first four years, and includes $20 million to be paid upon delivery of the rig.

Ensco said it will be reimbursed for startup costs and will adjust day rates for future changes in operating costs.

Singapore's Keppel FELS Ltd. will build the rig at a cost of $312 million, Ensco said. The company plans to deliver the rig in the second quarter of 2008.

The rig model - the Ensco 8500 - will be able to drill in up to 8,500 feet of water and include other enhancements over its first deepwater semisubmersible rig, the Ensco 7500.

Chairman and Chief Executive Carl F. Thorne said in a statement that the projects give the company a way to expand its deepwater capability ``on a conservative and financially attractive basis.''

Ensco shares rose 33 cents to $42.85 in midday trading on the New York Stock Exchange.



09/22/05 11:41 EDT

Watch HDY...October 25 deadline on the resolution of their PSA with Guinea. BIG.