ENSCO 8500 Series. 11 April Mark Burns Senior Vice President Western Hemisphere. David Hensel Vice President North and South America

Transcription

1 8500 Series Mark Burns Senior Vice President Western Hemisphere David Hensel Vice President North and South America 11 April

2 Strategy Addressing Heart of the Deepwater Market Cost-effective design and operations predicated on success of 7500 delivered in 2000 Leverage shipyard and vendor relationships Owner specified vs. owner supplied equipment Customer contract before shipyard contract Leverage customer relationships and workforce Compelling economics Win/Win/Win approach 2

3 No. of Wells Targeting the Heart of the Deepwater Market ,000-2,999' 3,000' - 7,499' > 7500' Water Depth Source: IHS ODS-Petrodata. Wells drilled since 2005 by ultra-deepwater semisubmersibles 3

4 Value Proposition Proven cost-effective design with enhanced operating capabilities suitable for exploration and development drilling programs Proven project management with demonstrated on time delivery performance Equipment with value-added features based on detailed customer input that also contains costs Deck layout facilitates customer equipment flexibility 4

5 Uniform Design Benefits Rig Shipyard Common Equipment Training Repair & Maintenance Spare Parts 5

6 8500 Series Technical Review 6

7 8500 Series Profile Water Depth Rated Drill Depth Main Deck L x W 8,500/10,000 ft 35,000 ft 240 ft x 255 ft Hull Dimensions L x W 310 ft x 56 ft Classification Offline Activity DPS-2 Moon pool & drill floor 7

8 Profile Dimensions Substructure Height 46 Quarters 150 beds Main Deck Height 97 Length 240 Columns Width 45 w/rounded corners Hull Length 310 by 56 Wide 8

9 Subsea Equipment BOP Equipment Latest generation 1 st to be recertified in GOM 6 rams compact 18-3/4 15M 6th ram is a test ram Blind shear & casing shear ram w/22 5,000 psi 9

10 Design Efficiencies Ability to work offline on drill floor and moonpool Ability to handle 93 length of drill pipe & casing on catwalk Multi-manipulator arm drill floor Electronic driller Dual oil base & water base mud system Improved tree handling layout BOP test ram Riser hang-off/transit system 10

11 8500 Series Successes 11

12 Operational Successes Drilled in 7,200 water depth Drilled to 33,814 Ran 13 5/8 casing string weighing 1.8 million lbs 8503 operated at currents up to 5.8 knots in French Guiana DWAT/Sea Trials 8503 completed in 49 days (10 day improvement) Mobilization 8505 from Singapore to GOM in 39 days 12

13 Regulatory Successes 1st rigs to be recertified in USGOM 8500 worked at full day rate on allowed activities 8501 first rig in USGOM to receive drilling permit post-macondo DOI visits rigs to highlight resumption of drilling in the USGOM 13

14 Customer Successes 8500 Drills Anadarko s Major Lucius Discovery 8503 Drills Tullow s French Guiana Discovery 14

15 French Guiana Zaedyus timeline th February End of 3D seismic acquisition on Eastern Slope. 5 th May Processed 3D data available in house. 25 th September Zaedyus prospect selected; final location determined 14 th December Substantial revisions to well design are required in the light of evolving pore pressure fracture gradient predictions th February 8503 departs Gulf of Mexico. 1 st March 8503 arrives on location 3 rd March Drilling permit approved by Prefect 5 th March Zaedyus spudded 9 th September Press release, Zaedyus discovery 19 th November 8503 preparing for demobilisation 8 th December Rig off contract in GOM GRSS Meeting 5 th March 2012

16 Zaedyus; Key Lessons (1/2) Excellent EHS performance by the team particularly 8503 (new build); more than 0.5 million man hours without an LTI and no environmental incidents 8503 rig uptime 96.2% - good for newbuild Detailed pore-pressure modelling and monitoring But onset of likely overpressure in the shale was not initially countered with sufficient mud-weight Main supply base in Port of Spain, Trinidad Supplemented by Paramaribo e.g. hot shot airfreight, MGO Four supply boats utilised, incl. one fast vessel; no waiting time during entire operation 3-4 days sailing one-way to Port of Spain Security of fuel supply critical; strike in Trinidad affected deliveries to Paramaribo Vessels only had 2,000bbl MGO capacity; 5,000bbl would have been better Cayenne office set-up ideal Tullow and main service providers under one roof (with some segregation) Over the course of the well developed Real Time monitoring capability in Cayenne to assist decision making, in addition to Schlumberger Real Time Operating Centre (RTOC) in Houston GRSS Meeting 5 th March 2012

17 Zaedyus: a major challenge successfully executed The result: All the challenges were eventually overcome to deliver a major discovery with no Lost Time Injuries or Environmental Incidents Sensitive environment; frequent over-flights, marine mammal observers, turtles etc. Success case additional contingent side track & core, side wall coring & very extensive data acquisition But, initial well cost and time estimates were substantially exceeded GRSS Meeting 5 th March 2012

18 Standardization A Marketing Advantage

19 Customer Testimonials Drilling operations with our new deepwater rig 8501 exceeded expectations. We completed the well in approximately 15% less time than expected and 20% below planned cost. Nexen 2Q10 Earnings Release extraordinary drilling results on a very complex well (>33,000 sub-salt) while having a superb safety record. Customer letter thank each and every one of you for your dedication in building a safety and performance culture that is next to none. Customer letter 19

20 Financial Successes 97% utilization for 8500 Series in 2011 Revenue backlog exceeds $1.9 Billion IRR for Series well exceeds 15% hurdle even with Macondo impact Delivered on-time and on-budget 20

21 Newbuild Report Card Driller Total Returns Marketing ESV A A+ B A ATW B- C- B B DO A- A B A- NE C- C- B- F RDC B- C+ B+ C RIG B+ B B A SDRL A A- A+ B+ Average B B B+ B- Cost & Timing Source: Credit Suisse 21

22 Strong Financial Returns 600 Construction Cost Current Day Rate 600 Construction Cost (in $ millions) Current Day Rate (in $ thousands) Order Date Contracted Date Sep Jan Sep Jun Apr May 2008 Aug Sep Jan Sep May 2008 Apr Oct Jan

23 Strength of Contracts Monthly Changes Bolded rig names and underlined text signify changes in rig status from previous report. Segment / Region / Rig Design Water Depth' (1) Customer/ Status Day Rate $000 s US Ensco plc Fleet Status Report 16 February 2012 Location Est. Avail / Contract Change Deepwater North & South America (excluding Brazil) 8500 Semisubmersible DP 8500/10000 Anadarko/Eni High 290s U.S. Gulf of Mexico Aug Semisubmersible DP 8500/10000 Nexen/Noble Energy High 370s U.S. Gulf of Mexico Jun Semisubmersible DP 8500/10000 Nexen Mid 490s U.S. Gulf of Mexico Jun Semisubmersible DP 8500/10000 Cobalt Mid 540s U.S. Gulf of Mexico Dec

24 Summary Strategy has proven to be successful Customer acceptance even better than expected Excellent financial returns Standardization has become a hallmark of Ensco 24

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