Offshore drilling services provider Ensco has announced plans to cut its global operations reporting structure from five to three business units as part of its efforts to reduce costs.
The company is considering increasing offshore unit labour cost savings to 15%, from the previously estimated 9%.
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Ensco also aims to achieve an incremental $30m of annualised savings by reducing onshore support positions by an additional 14%.
The company said it will further cut average warm-stack costs per day of $40,000 for drillships, $32,000 for semisubmersibles and $20,000 for jackups.
Contract drilling expense for the third quarter is estimated to be from $450m to $455m by excluding severance costs and related expenses of $5m.
Ensco chief executive officer and president Carl Trowell said: "We recently streamlined our global operations reporting structure and have taken additional steps to reduce expenses.
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By GlobalData
"Steps taken to adjust discretionary compensation plans will reduce offshore unit labour costs by a total of 15% compared to 2014 levels.
"Disciplined expense management of marketed warm-stacked rigs will also generate incremental savings."
For the fourth quarter, the initial contract drilling expense outlook is estimated around $435m to $440m, with reported fleet usage is estimated to increase from third quarter to the high-60% range.
Ensco has a major presence in the strategic offshore basins across six continents.
