Cooper Energy has reached a Final Investment Decision (FID) for its Sole gas project offshore Australia. Sole is located in VIC/L32 the Gippsland Basin, offshore Victoria, around 65 km from the Orbost Gas Plant. Sole will deliver gas sales of 4 million barrels of oil equivalent per annum to Cooper Energy. The capital cost of the Sole upstream development is estimated to be around $355 million, inclusive of the cost of drilling and completing two wells using Diamond offshore UDW semi Ocean Monarch (10,000'). The project is due to come on stream in 2019.
Diamond Offshore have decided to remove five cold stacked floaters from active service and they are being held for sale as scrap or non drilling uses. All five have been cold stacked for three years or more. In the North Sea mid water floaters the Ocean Nomad, a 1975 built Aker H-3-2 design semi, has been stacked since March 2015, the Ocean Princess, an Aker H-3 also built in 1975 and also idle since March 1975 and lastly the Trosvik Bingo 3000 design rig Ocean Vanguard built in 1982 which has been out of work since June 2014. The other [...]
Diamond Offshore, in their latest Conference Call stated that they were still actively engaged with BP in looking for alternative work for their new build harsh environment semi Ocean GreatWhite which has been stacked in Labuan since delivery in January. The rig is on a standby rate under a 3 year plus options contract and was meant to have drilled for BP in the Great Australian Bight before the operator cancelled its drilling plans.
Diamond Offshore reports it earned a net income of $15.9 million on revenues of $399.2 million for the three months ended June 30, 2017. The adjusted net income was $62.2 million, but was impacted by a $46 million impairment charge related to the carrying value of two semis. The 2Q net income was a 32% decline from the 1Q/2017, while the adjusted net income was up 165%. the company earned a net and adjusted net income of $23.5 million on revenues of $374 million for the first three months of the year.
Origin Energy, partners with AWE in the BassGas Project have completed the final phase of the Mid Life Enhancement project at the Yol-la platform which added two new development wells under phase 2 drilled by Seadrill jackup West Telesto in 2015. The JV is now working on the development of the nearby Trefoil field in permit T/RL2 for which they have chartered Diamond UDW semi Ocean Monarch for a four well development drilling program starting in June 2018.
Diamond UDW semi Ocean Monarch has arrived in Australia and has commenced its 18-well P&A program in the Griffith field in WA-10-L and WA-12-L for BHP. The P&A program will keep the rig busy until November with BHP holding 2 well options which if exercised would help close the gap between BHP’s program and the rig’s next assignment with Cooper Energy in March 2018.
Diamond jackup Ocean Spur has arrived in Alang in India where it is to be scrapped. The F&G L780Mod II rig built in 1981 had been cold stacked in Malaysia since June 2015. Alang has received an in-creasing number of jackups and floaters to be scrapped over the last year. Around 100 floaters have been scrapped since the beginning of the downturn but only 26 jackups have met their end.