Ensco plc Announces Three Drillship Contracts

ENSCO DS-4 Contracted to Chevron for Two Years
ENSCO DS-10
Contracted to Shell for One Year
ENSCO DS-7 to Return to Work with
Total

LONDON–(BUSINESS WIRE)–Ensco plc (NYSE: ESV) announced today that it has been awarded three
drillship contracts offshore West Africa, representing an aggregate
three years of contracted term and more than six additional years of
options.

Chief Executive Officer and President Carl Trowell said, “Our recent
contract awards demonstrate our ability to win work for preservation
stacked rigs and newbuilds ahead of the competition. We contracted ENSCO
DS-4, a rig that was previously preservation stacked, for a two-year
term and reactivated the rig on time and within our cost estimates. We
also secured a one-year contract for ENSCO DS-10, our final newbuild
drillship, which is among the most technologically advanced rigs in the
global fleet.”

Mr. Trowell concluded, “We continue to see offshore drillers with track
records of safe and efficient operations as well as financial strength
win a disproportionate amount of new work and these contracts are
examples of our recent success in capitalizing on this trend.
Additionally, we believe that this new work positions us well for
follow-on opportunities, benefiting future utilization for our rig
fleet.”

ENSCO DS-4 is expected to commence a two-year contract with Chevron
offshore Nigeria in August 2017. The contract also includes a priced
customer option for one additional year of work. Ensco recently
reactivated the rig following a period during which the rig was
preservation stacked in Tenerife and reactivation expenses are expected
to total $28 million. In addition, $15 million of capital upgrades were
added to the rig and are anticipated to benefit the asset over its
remaining useful life.

ENSCO DS-10 is scheduled to commence work with Shell offshore Nigeria in
first quarter 2018. The contract duration is for one year and includes
five one-year priced customer options. As a result of winning this
contract, the rig’s delivery is expected to be accelerated into third
quarter 2017 from first quarter 2019. ENSCO DS-10 will then undergo a
period of acceptance testing before mobilizing to Nigeria to begin its
maiden contract. Remaining capital expenditures associated with the rig
are expected to total approximately $190 million inclusive of a final
milestone payment to the shipyard, an upgrade to add a second seven-ram
blowout preventer, acceptance testing, capitalized interest and
mobilization.

ENSCO DS-7 is contracted to Total until November 2017. Since November
2016, the rig has been idle in Tenerife earning a standby rate following
early termination of its original contract for customer convenience.
ENSCO DS-7 is now scheduled to mobilize to Ivory Coast to drill one well
beginning in August 2017 that is expected to take 60 days to complete.
Additionally, Total has a priced option for one further well.

As a result of these new contracts, contract drilling expense for second
quarter 2017 is expected to be approximately $282 million after
adjusting for a $10 million settlement of a previously disclosed legal
contingency, slightly higher than the prior guidance of $270 million to
$280 million, or $292 million on an unadjusted basis. Anticipated
capital expenditures are now expected to total approximately $350
million for the nine month period from second quarter 2017 through
fourth quarter 2017. This capital expenditure estimate includes
approximately $240 million for new rig construction, inclusive of
approximately $29 million of capitalized interest, and approximately
$110 million for rig enhancements and minor upgrades and improvements.

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Ensco plc (NYSE: ESV) brings energy to the world as a global provider of
offshore drilling services to the petroleum industry. For 30 years, the
Company has focused on operating safely and going beyond customer
expectations. Ensco is ranked first in total customer satisfaction in
the latest independent survey by EnergyPoint Research — the seventh
consecutive year that Ensco has earned this distinction. Operating one
of the newest ultra-deepwater rig fleets and a leading premium jackup
fleet, Ensco has a major presence in the most strategic offshore basins
across six continents. Ensco plc is an English limited company (England
No. 7023598) with its corporate headquarters located at 6 Chesterfield
Gardens, London W1J 5BQ. To learn more, visit our website at www.enscoplc.com.

Forward-Looking Statements

Statements included in this release regarding the timing of work
performed by rigs and the estimate and timing of expenses related to
such rigs and other statements that are not historical facts are
forward-looking statements (including within the meaning of Section 21E
of the Securities Exchange Act of 1934, as amended, and Section 27A of
the Securities Act of 1933, as amended). Forward-looking statements
include words or phrases such as “anticipate,” “believe,” “contemplate,”
“estimate,” “expect,” “intend,” “plan,” “project,” “could,” “may,”
“might,” “should,” “will” and words and phrases of similar import. These
statements involve risks and uncertainties as detailed in the risk
factors section and elsewhere in Ensco’s Annual Report on Form 10-K for
the year ended December 31, 2016, and other filings with the Securities
and Exchange Commission (the “SEC”), which are available on the SEC’s
website at www.sec.gov.

Contacts

Ensco plc
Nick Georgas, 713-430-4607
Director – Investor
Relations and Communications
or
Tim Richardson, 713-430-4490
Manager
– Investor Relations