Reports are now emerging that PERTAMINA Hulu Energi North Sumatra Offshore (PHE NSO) has issued a market inquiry for a MDW floating rig to undertake a one-year drilling program in Block NSO off Sumatra. Work is said to consist of a P&A program lasting around 125 days plus a 240-day, three-well exploration campaign in around 338' of water. The operator had attached two wells to a tender put out by PERTAMINA Drilling Services (PDSI) on behalf of TAC PERTAMINA Blue Sky Langsa. As there appears to be no progress on that tender, PHE NSO has now opted to go on [...]
KNOC has issued a market survey regarding jackup availability for an exploration well in the Rong Doi Moi field in Block 11-2 off Vietnam. The 70-day well is currently scheduled to begin in 2Q/2018. Water depth in the field is around 230' and leg penetrations between 98' to 131' are expected. The operator has previously issued a market survey in February 2016 for an extended reach well, but has now opted for the standalone exploration well.
Woodside Energy has farmed into exploration permit WA-250-P offshore Australia and taking over as operator of the licence. Finder Exploration sold the 90% interest to Woodside and will keep a 10% participating interest in the asset. The Permit is located in the Northern Carnarvon Basin, directly south of the Gorgon and Clio major gas fields. Large multi-TCF Triassic gas and large Cretaceous oil prospects have already been identified in the area and further seismic will soon be acquired at the block.
Jackup PV Drilling I has just arrived on location in the Bach Ho Field off Vietnam to begin a quick one-well contract for VietSovPetro. The rig had just completed work for Cuulong JOC and had an idle gap until around mid-October when it was due to begin a six-well plus two-option contract for KrisEnergy. The current well will take the rig to the end of September, cutting the idle time to just a couple of weeks.
An unexpected breakthrough in the boundary dispute between Australia and Timor-Leste has resurrected hopes that the stalled development of the $13 billion Sunrise LNG project will recommence. Through a series of confidential meetings with the Permanent Court of Arbitration's Conciliation Commission in Copenhagen this past week, Timor-Leste and Australia reached agreement on the central elements of the maritime boundary delimitation between them in the Timor Sea. The agreement also addresses the legal status of the Greater Sunrise gas field, the establishment of a Special Regime for Greater Sunrise, a pathway to the development of the resource and the sharing of [...]
Bids were due August 31 to PTTEP for its tender for a DW floating rig to drill eight slim-hole wells in Blocks M9/M11 in the Zawtika field and one well in Block MD-7 off Myanmar. Water depths in the two areas range from 660' to as deep as 6,560'. Start date is February 2018 and reports say 10 rig owners were invited to submit bids. A moored DW or combination DP/moored semi is required for the drilling, which is expected to last 6-8 months.
With the vast number of rig retirements expected to take place over the coming years, Japanese shipyard Tsuneishi is planning to construct a ship recycling yard on the island of Negros, close to its existing shipbuilding yard in Ceibu in the Philippines. The yard is expected to be the first facility in Asia that will comply with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009.
Market sources suggest that MDW semi COSLProspector (4,921') will complete work with CNOOC in the South China Sea in the fourth quarter of 2017. It is understood that the rig is being bid on work for 2018 and 2019 in the UK and Norwegian sectors, where the company has seen the most increase in tendering activity of late. The unit does not yet have a UK Safety Case or Norwegian AoC, which it would need to work in either of these countries.
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.
Empyrean Energy has successfully acquired new 3D seismic data across its Block 29/11 offshore China. The survey covered 520 square-kilometers of new 3D seismic over the permit, including two key prospects, Jade and Topaz. In addition, a further 28 square-kilometers of 3D was acquired along the western boundary of the block and extending over the LH 23-1d oil discovery, west of Empyrean's permit. The additional data is expected to allow the company to evaluate the extent of a potential geological tie between the LH 23-1d oil discovery and Jade and Topaz.
KrisEnergy and the government of Cambodia have signed agreements for the first oil field development, located in Block A in the Gulf of Thailand. The operator plans to develop the Apsara area in the northeastern section of the concession. Under the terms of the agreement, KrisEnergy has 60 days to declare a final investment decision For Apsara, which is expected to take up to 24 months to come online. Phase 1 of the development will consist of a single unmanned minimum facility 24-slot wellhead platform, producing to a moored production barge capable of processing up to 30,000 barrels of fluid [...]
Market reports say Medco Energi has exercised three of nine priced option wells it had available on Seadrill semi tender West Vencedor (6,561'). The new term in Block B off Indonesia is said to have begun earlier this month with the 40-day wells expected to keep the rig busy into November. Medco contracted the tender unit under a five-month (three wells) plus options contract that started in March. Medco Energi acquired Block B and other Indonesian assets from ConocoPhillips in 2016.
KeppelFELS chances of getting Grupo R to accept delivery of the three jackups they have under construction by the end of 2017 as planned do not look too rosy. All three rigs, Cantarell III, Cantarell IV and Cantarell V, were to be originally delivered in 2016. Grupo R has revealed that they cannot obtain financing until they have an acceptable signed contract for each unit. Grupo R are already paying KFELS an additional 4% of the balance due on each rig which is being paid quarterly and it is likely they will extend this deal beyond end 2017.
Revenue Drop In Q2 For Shelf Drilling For the second quarter of 2017, Shelf Drilling reported revenues of $142.8 million, compared with $169.9 million in the same period a year earlier. The decrease in total revenue was largely due to a decrease in average day rates and a decline in marketed utilization. Total rig operating expenses decreased by $11.5 million in second quarter 2017 to $65.0 million compared with the previous year's quarter. This decrease was mainly due to lower expenses for rigs which were seeking marketing opportunities. For the second quarter of 2017 adjusted EBITDA was $56.5 million compared [...]
PERTAMINA Hulu Mahakam has now made bid documents available for pickup by rig owners bidding on its two-year jackup requirement in the East Kalimantan area off Indonesia. It is understood a mandatory prebid meeting will be held August 25, with bids due September 19. Rig requirements include a 350' jackup built after 2000 with 434' of usable leg below the hull, a 70' x 30' cantilever envelope, a minimum of 3 x 2,200 HP, 7,500 psi mud pumps and 3,000 HP drawworks. Drilling is scheduled to begin 1Q/2018, with a local content requirement of 35%. PERTAMINA received pre-qualification documents from [...]
Chevron has extended its bid deadline a second time for its upcoming Gorgon Gas Stage 2 development drilling program off Australia. Bids are now due August 31, a week later than the previous deadline. The program has two potential work scopes; 11 wells over a two-year period plus four option wells or 11 wells over 2.5 years plus four option wells. Start date is scheduled for late 2018 or early 2019 in water depths ranging from 650' to 4,430'. It is understood Chevron is requiring a rig with a 12-point mooring system or a combination moored, DP2/3 system keeping system.
Jackup ENSCO 106 (400'-IC) has completed operations in Block B15 for Sapura Energy, completing the contract. It is now mobilizing to Singapore where it will undergo contract preparations for its upcoming five-year plus three-year option program with BP in the Tangguh PSC off Indonesia, with work starting in December.
Atwood are close to finalizing the sale of Korkut New Era design semi Atwood Eagle, built in 1982. The former Diamond M Eagle was removed from Atwood’s active fleet in May and put up for sale as scrap. The rig, which had long worked in the region, mostly in Australia, last worked in Match 2016 and has been stacked in Singapore’s KeppelFELS yard since then.
Repsol has awarded a contract for the provision of jackup UMW Naga 5 (400'-IC) for one year of work plus a one-year option, covering operations offshore Malaysia. The campaign will begin in mid-September, shortly after the rig completes its current contract with Petrofac offshore Malaysia.
The former Frigstad Kristiansand, now Bluewhale II, nears delivery and is currently on sea trials. The 7th generation Frigstad D90 design 12,000ft wd rated semi is now owned by CIMC Bluewhale Rig Ltd and is set for delivery at the end of this month. No charter has yet been announced for the rig. Another Chinese owned semi-sub, COSL’s Hai Yang Shi You 982, under construction at Dalian Shipyard, is also nearing delivery, scheduled for early 2018. The harsh environment Agility GG5000 design rig is currently having its thrusters installed which will be followed by sea trials. The 5,000ft wd rated [...]