ENSCO to Build New Jackup

ENSCO International has entered into a letter of intent with Keppel FELS Limited in Singapore for construction of a new high performance premium jackup rig. The shipyard contract price for the rig will be approximately $117 million, and will be a replacement for ENSCO 64, which was heavily damaged by Hurricane Ivan in September 2004. The new rig is expected to be delivered by the end of the first quarter of 2007.

The new premium jackup rig, to be named ENSCO 108, will be an enhanced KFELS MOD V (B) design modified to ENSCO specifications. The rig is a sister rig to ENSCO 106, now operating in Australia, and ENSCO 107, which is expected to be delivered in late 2005. The transaction is subject to execution of a definitive construction contract.

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