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 [...]
Husky-CNOOC continues to make heavy weather of the tender for a jackup for their MBH, MDA and MDK development drilling project in the Madura Sea, having now invited the six qualified contractors to pick up tender documents for their latest re-tender. A pre-bid meeting was held on 11 August and attended by representatives of Apexindo, COSL, Seadrill, JDC, KS Drilling and Shelf. Bids are now due in on 29 August. The 7+2 well program is scheduled to commence in Q4 this year.
KrisEnergy are understood to have now selected another jackup after their first choice, Topaz Driller, was snapped up before they could confirm the award. The two well program is set to start this quarter and is expected to take between 2-3 months. Hot favourite is Seadrill’s West Cressida currently with PCPP in Malaysia until at least October.
After re-tendering in March, bids are due back to Husky-CNOOC (HCML) on August 29 for the operator's seven-well plus two-option contract in the MBH, MDA and MDK fields in the Madura Sea area off Indonesia. The qualified contractors, Apexindo, Seadrill, COSL, Japan Drilling, KS Drilling and Shelf Drilling, picked up bid packages at an August 11 meeting. Drilling is scheduled to begin late in 2017, so an award should be made in September.
Seadrill UDW semi West Orion has departed Walvis Bay off Namibia and is headed to Singapore, likely for cold stacking. Seadrill had reported it was one of three units being considered for cold stacking. It had been idle in Namibia since August 2016.
Seadrill says it has amended the revolving credit facility provided to subsidiary North Atlantic Drilling Ltd to now mature on September 12, 2017 as broader restructuring negotiations continue at both companies. The facility was originally entered into on January 31, 2017 for $25 million maturing on March 31, 2017. On April 25, 2017 the facility was amended to mature on June 30, 2017 and was increased to $50 million. On June 27, 2017 the facility was amended to mature on July 31, 2017 and was increased to $150 million.
Seadrill jackup West Telesto has mobilized to its drilling location in Malaysia and has already begun its 90-day firm charter with Petronas Carigali. The F&G JU2000E design rig will next be available in mid October but could be longer if options are exercised by PCSB.
Seadrill has been granted until September 12th to finalize its restructuring plan. However the company has warned that the final plan is likely to involve seeking Chapter 11 protection which will require substantial impairment or conversion of bonds as well as impairments and losses for other stakeholders including shipyards. The company has $14bn of debt and liabilities. Apart from investors the shipyards that are likely to take a big hit are DSME and Samsung in South Korea who have four UDW drillships under construction for Seadrill, China’s Dalian Shipyard (DSIC) with eight jackups under construction, Jurong shipyard in Singapore and [...]
Ophir Energy’s pre-qualification submission date for its re-tender for an UDW floater has been extended to early August. Five contractors have been invited to participate, Apexindo (who presumably will represent an international contractor), COSL, Ensco, Seadrill and Transocean. Ophir requires a semi or drillship capable of working in 1800m water depths and MPD capable for an explora-tion well in the West Papua IV PSC. The re-tender has removed the requirement for an Indonesian flagged vessel of which there are none and has also lowered the local content requirement reduced to 15%.
Husky-CNOOC have pre-qualified five contractors for their long drawn out tender for a jackup for its 7+2 well drilling program in the MBH, MDA and MDK fields in the Madura Sea. Four con-tractors, Apexindo, JDC, COSL and Seadrill had already qualified from a previous failed tender and were joined by KS Drilling. The 18 month charter is to begin in December this year. HCML have been criti-cized by SKKMIGAS for continually favouring Chinese contractors so it will be interesting to see the results this time around.
ConocoPhillips’ tender for a 400ft jackup to drill two (2) platform production wells and a subsea well in the Bayu-Undan field in the JPDA is in the clarification stage with bid evaluations having been completed. Five contractors are understood to have submitted bids, Ensco, Noble, Seadrill, Northern and Transocean. The 270 day program is set to start in April 2018.
Husky-CNOOC’s tender for a jackup for a 7+2 well charter for their MBH, MDA and MDK fields in the Madura BD PSC continues to potter along as it has done since December 2015. Still at the pre-qualification stage (lost count how many tenders and re-tenders) they are currently re-questing clarifications from bidders, twelve of whom participated in the previous pre-qualification of which Apexindo, Seadrill, JDC and COSL managed to qualify and are exempt from the current pre-qualification exercise.
Petronas Carigali in Malaysia, whose current contracted fleet of seven drilling rigs are all Malaysian owned, has had to turn to a foreign owned unit for their latest tender for a 2 well plus options charter for offshore Sarawak. Seadrill jack-up West Telesto is to commence its new charter before the end of the month with the firm period taking it to the end of October. This is the first award made to a non Malaysian rig by PCSB since Tasha in 2014.
Seadrill jackup West Cressida has now mobilized from Labuan to PCPP’s location in Block SK 3015 offshore Sarawak. The rig will carry out nine plug and abandonment operations in a charter that will take around 90 days, keeping the rig busy until late September. The rig has managed to keep itself fairly busy during the downturn with charter with Coastal and PTTEP since mid 2015.
Seadrill have reached a settlement agreement with Hyundai Shipyard over the UDW semi West Mira and have been paid $170m in cash as full settlement of the dispute that went to arbitration in 2015 after they had cancelled the construction contract. As part of the settlement Northern Drilling, an asset holding company related to John Fredriksen, who have purchased the rig from Hyundai. Seadrill is likely to manage the rig once it becomes operational and will have first right of refusal to purchase the rig from Northern.
The refusal of low bidder Seadrill to extend the validity of their bid to ONGC for a DP floater appears to have rendered ONGC into an inert state with no word on whether they will re-tender or invite the third lowest bidder, Universal Services who offered Petroserv semi Louisiana, to match the Seadrill offer. Second lowest bidder for the two rig requirement is Vantage Drilling with UDW drillship Platinum Explorer, currently stacked in Labuan, who has yet to be confirmed a winner. A Seadrill spokesman confirmed the company had pulled out, explaining that there were "delays in the tender process, [...]
With all Malaysian owned jackups now contracted the way is now clear, at least until Q3 when several Malaysian rigs will once again be available, for international or regional jackups to acquire work within the country that has been closed to them for around two years. The first beneficiary of this was Ensco with the Ensco 106 to Sapura Energy and now Seadrill has similarly benefitted winning a 9-well plug and abandonment charter with the West Cressida for PCPP in Block SK3015 offshore Sarawak which will begin in June and keep the rig busy for 90 days although some reports [...]
Seadrill has moved mono-hull semi Sevan Driller from anchorage in Singapore to Malaysia where it will remain warm stacked until it is awarded an “acceptable employment”. One wonders if the ONGC charter from which it withdrew despite being low bidder was deemed unacceptable. Seadrill had refused to extend its bid validity thus effectively withdrawing their bid from the 3 year firm tender but only after setting the lowest rate yet seen for an UDW floater.
COSCO China have completed the construction of UDW mono hull semi Sevan Developer and the rig is now stacked in the shipyard awaiting Sevan/Seadrill to accept delivery. The rig was ordered in 2011 and was originally set for delivery in Q2 2014 but following Seadrill’s acquisition of a majority share in Sevan Drilling, Seadrill had stated categorically that they would not accept delivery until they have a suitable contract in place.