ENSCO International has exercised its option to purchase the remaining non-owned 75% interest in ENSCO 106, an enhanced KFELS MOD V (B) design jackup rig built to ENSCO's specifications. ENSCO 106 was constructed by Keppel FELS Limited, a subsidiary of which was ENSCO's 75% joint venture partner in the rig. Earlier today, the Company took delivery of the rig and paid approximately $80 million for the remaining 75% interest in ENSCO 106, for a total investment of approximately $108 million (including the cost of ENSCO's initial 25% ownership). In mid-March 2005, ENSCO 106 is expected to commence a one year contract with Apache in Australia at an average rate of approximately $97,000 per day.
With the addition of the ENSCO 106 and the expected year-end 2005 delivery of a sister rig now under construction, ENSCO 107, ENSCO's premium jackup fleet will increase to 44 rigs, nine of which will be newly constructed ultra-high specification rigs.