Businessweek

Ensco plc operates as an offshore contract drilling company worldwide. The company provides offshore contract drilling services to major international, government-owned, and independent oil and gas companies. The company owns an offshore drilling rig fleet of 74 rigs, including rigs under construction. Its rig fleet includes 9 drillships, 13 dynamically positioned semisubmersible rigs, 6 moored semisubmersible rigs, and 46 jackup rigs. Of its 74 rigs, 22 are located in the North and South America region (excluding Brazil), 10 are located in Brazil, 9 are located in Europe and the Mediterranean region, 14 are located in the Middle East and Africa region, and 19 are located in the Asia Pacific rim region. The company has three technologically-advanced drillships and three ultra-premium harsh environment jackup rigs under construction. The company provides drilling services on a ‘day rate’ contract basis. Under day rate contracts, it provides a drilling rig and rig crews and receives a fixed amount per day for drilling a well. Segments The company’s business consists of three segments: Floaters, which includes its drillships and semisubmersible rigs; Jackups; and Other, which consists of management services on rigs owned by third-parties. Its two segments, Floaters and Jackups, provide one service, contract drilling. Customers The company’s customers include majority of the primary national and international oil companies, in addition to various independent operators. The regions in which the company operates include major markets in Southeast Asia, Australia, the North Sea, the Mediterranean, the U.S. Gulf of Mexico, Mexico, and the Middle East, as well as Brazil and West Africa. Its major customer includes Petrobras. Business Strategy The company’s business strategy has been to focus on ultra-deepwater floater and premium jackup operations, and de-emphasize other assets and operations considered to be non-core or that do not meet its standards for financial performance. Environmental Matters The International Convention on Oil Pollution Preparedness, Response and Cooperation, the U.K. Merchant Shipping Act 1995, the U.K. Merchant Shipping (Oil Pollution Preparedness, Response and Cooperation Convention) Regulations 1998 and other related legislation and regulations and the Oil Pollution Act of 1990, as amended, and other U.S. federal statutes applicable to the company and its operations, as well as similar statutes in Texas, Louisiana, other coastal states and other non-U.S. jurisdictions, address oil spill prevention and control and significantly expand liability, fine and penalty exposure across various segments of the oil and gas industry. History Ensco plc was founded in 1975 as a Texas corporation.