Offshore driller Ensco is reportedly preparing to eliminate over 300 jobs.

According to documents seen by the Houston Business Journal, the company expected to begin cutting 350 jobs at its San Felipe Plaza office in Houston on May 11.

Ensco will also stack the Ensco DS-3, Ensco DS-4 and Ensco DS-5 drillships and the Ensco 8500 semisubmersible rig.

UK-based Ensco has not disclosed further details about the plans.

Ensco President and CEO Carl Trowell said in April that the DS-4 and DS-5 will not be completely cold-stacked.

Trowell said the company is relocating the rigs from the Gulf of Mexico “where they have basically been at anchor” and will use “the thrusters and burning fuel to a new cluster stack approach” in Tenerife.

During the company’s first quarter investor call, Trowell said Ensco was still in arbitration with Petrobras regarding the drilling services contract for the Ensco DS-5.

Ensco did not book any revenue for the rig in the fourth quarter of 2015 or in the first quarter of 2016.

Petrobras canceled its contract for the DS-5 rig in January over alleged graft payments made to a third party marketing consultant.

“We are also in arbitration with Samsung, the shipbuilder for ENSCO DS-5, to recover any monies due to us including potential overpayments related to alleged bribes Samsung paid to Petrobras,” Trowell said.

In a notice filed with the U.S. Securities and Exchange Commission that month, Ensco said Petrobras alleges that Pride International knew about “improper payments” made by the shipbuilder of the DS-5 to a former third-party marketing consult

Pride International was purchased by UK-based Ensco in 2011.

Ensco has denied any wrongdoing.

Ensco confirmed during the investor call that it plans to scrap or permanently retire a total of 11 rigs, a figure that included the recent sale of the Ensco 6000.

“As we stated previously, we believe rig scrapping industry-wide will continue as we go through 2016 and 2017 and we think this will be a major factor in rebalancing the rig market,” Trowell added.

Ensco expects to retain some employees at its stacking locations and could recall some previously assigned workers if it wins new contracts, the Houston Business Journal said.

The latest job cuts come less than a year after Ensco announced that it would cut 14 percent of its onshore support positions as part of a cost reduction effort.


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