According to a WARN Notice sent to the Texas Workforce Commission, Ensco started the workforce reduction process, that will last for 60 days, on May 11, 2016.

Houston Business Journal reported that is reducing the workforce due to the anticipated stacking of three of its drillships, Ensco DS-3, Ensco DS-4 and Ensco DS-5, as well as its 2008-built semi-sub rig, Ensco 8500. Ensco’s drillships DS-3 and DS-4 were built in 2010, and DS-5 was built in 2011.

Offshore Energy Today has reached out to Ensco seeking confirmation of these reports, however we are yet to receive a response from the company.

The offshore driller recently lost a contract with Brazil’s state-owned oil and gas company Petrobras for the drillship DS-5. Ensco responded to the cancellation by initiating arbitration proceedings against Petrobras and South Korean shipbuilder Samsung Heavy Industries.

Earlier in May, Ensco received another two rig contract terminations for 2004-built semi-subs, Ensco 6003 and Ensco 6004, from Petrobras. Following the terminations, Ensco said that these two semi-sub rigs would be ‘permanently retired’.