Varco Supplys Drilling Equipment for New Jackup Rigs

Varco International has signed two contracts to supply drilling equipment for two new jackup rigs. The first package is valued at approximately $14 million, for a jackup drilling rig being constructed for ENSCO International. The equipment to be provided by Varco for the rig includes blow-out preventers, pipe handling tools, solids control equipment, and Varco's new AC-powered drawworks and top drive. The ENSCO 107 Enhanced KFELS MOD V (B) jackup rig is being constructed by Keppel Fels shipyard in Singapore, and is scheduled for 2005 delivery.

The second package of drilling equipment is for a jackup drilling rig also being constructed by Keppel Fels for a drilling contractor based in the Eastern Hemisphere. The $11 million equipment package includes a top drive, solids control equipment and a V-ICIS drilling control system. The second drilling rig is also scheduled for 2005 delivery.

"We are delighted with these two customers' decisions to equip their newest offshore drilling rigs with advanced Varco drilling systems," noted John F. Lauletta, Varco's chairman and CEO. "We value our long relationship with both, and remain committed to providing them with outstanding technology and service."