This week Maersk Drilling announced new floater contracts in Southeast Asia and South America, while ADNOC Drilling finalised the acquisition of two Argent rigs. Meanwhile, Shelf Drilling closes fundraising for the five North Sea jackups.

Contracts

Maersk Drilling's drillship Maersk Viking has been awarded a three-well contract extension and an additional eight-well contract from Sarawak Shell Berhad and Sabah Shell Petroleum Co Ltd. (SSB/SSPC). A five-well scope will be novated to PTTEP for drilling and P&A activities at the Kikeh field, with a total estimated duration of 116 days and commencement in November 2022, in direct continuation of the drillship's previous work scope. The drillship will then undergo a special periodic survey (SPS) before commencing a six-well drilling campaign with SSB/SSPC. The six-well campaign will last for 281 days and is expected to commence in Q4 2023, plus options to add work for a total of 11 wells. The firm contract value of the extension and new contract is approximately USD 153 million, including demobilisation, mobilisation fees and fees for the use of management pressure drilling (MPD) on certain wells.

The semisubmersible Maersk Developer has been awarded a contract from Shell Brasil for work in the Campos Basin, offshore Brazil. The contract scope includes the drilling of one exploration well and to perform subsea well invervention at the BC-10 field. The contract is expected to commence in March 2023, in direct continuation of the rig's current contract with Karoon, and the duration is 90 days. The contract value is approximately USD 37 million, including a mobilisation fee.

Drilling activities

Vaalco Energy has successfully drilled the North Tchibala 2H-ST well, which was drilled from the Southeast Etame North Tchibala platform in the Etame field, offshore Gabon. The US operator currently has the Borr Drilling jackup Norve on contract in the country. Vaalco Energy also had the Venus Block P Plan of Development approved by the Government of Equatorial Guinea. First oil is targeted in mid-to-late 2026 and Vaalco plans to spud the first development field in 2024. An additional development well and a water injection well could also be spud in 2025/2026.

Demand

Tower Resources Cameroon has executed a term sheet (in June) with BFGI Bank Group for a medium term loan of CAF 4.42 billion (USD 7.1 million equivalent) as partial financing for the upcoming exploration well NJOM-3 on the Thali block, offshore Cameroon. The loan will cover approximately 40% of the USD 18 million well cost, with a further amount in excess of 25% already having been paid for by Tower Resources and the balance of 35% of the cost of the well also to be funded by Tower Resources.

Well Results & FIDs

INEOS and partners have agreed on Final Investment Decision regarding the development of the Solsort West field, offshore Denmark, after receiving the approval of the development from the Danish Energy Agency. The Solsort development consist of two wells and the gas will be produced via the Syd Arne installation operated by INEOS. Earlier this week INEOS contracted the Maersk Drilling harsh-environment jackup Maersk Resolve which will be drilling the two development wells starting in early 2023, while first oil and gas is expected in Q4 2023.

Mobilisation/Reactivation

Borr Drilling jackups Arabia I and Arabia II are now en route to Saudi Arabia, where they will commence their maiden contracts with Saudi Aramco. The charters are for three years each plus options. Both KFELS B-class rigs are capable of working in up to 400 ft of water.

Dolphin Drilling semisub Blackford Dolphin is preparing to leave Mexico for its next assignment off West Africa. PM Offshore anchor handling tug Goliath is assisting with the move. The rig had been in Mexico since late 2020, most recently working with Pemex. Its next job is with General Hydrocarbons off Nigeria.

Other News

Providence Resources has changed its name to Barryroe Offshore Energy. The name change for the Ireland-based company is effective as of 27 September. The company operates the Barryroe field in Standard Exploration Licence 1/11 in the North Celtic Sea Basin. Barryroe's board intends to move forward with plans to optimise the value of the field.

Shelf Drilling announced that its North Sea subsidiary Shelf Drilling (North Sea) Holdings, Ltd. has closed the offering of USD 250 million aggregate principal amount 10.25% senior secured notes due 2025. Shelf Drilling (North Sea) will use the net proceeds from the notes offering to pay part of the purchase price of the five jackups acquired by Noble. The notes were issued at an issue price of 97% and will mature on October 31, 2025. Interest on the notes will be paid semi-annually in cash in arrears on April 30 and October 31 of each year, commencing on April 30, 2023. The notes amortize at 5% per annum based on the initial aggregate principal amount of the notes; amortization payments will be made semi-annually beginning on October 31, 2023 and continuing on each interest payment date thereafter.

The Canada-Nova Scotia Offshore Petroleum Board (CNSOPB) has issued Call for Bids NS22-1, which includes eight nominated parcels in the Scotian Shelf and Scotian Slope areas. Bids must be received by 19 September, 2023 before 4:00 pm Atlantic Time. Successful bidders may be awarded exploration licenses, subject to federal and provincial review and approval processes. Should a license be issued, a project-specific environmental assessment or impact assessment would be required by the CNSOPB prior to consideration of applications to carry out exploration activity on the license. Parcels 1 to 5 are on the Scotian Slope in water depths ranging from 100 to 4,300 meters (328 to 14,108 ft). Parcels 6 to 8 are in the Sable Island area of the Scotian Shelf in water depths less than 200 meters (656 ft). A strategic environmental assessment of the Middle and Eastern Scotian Slope and Sable Island Bank Areas, which includes the NS22-1 parcels, was issued in May 2022.

Barbados' Ministry of Energy and Business plans to launch the Barbados 2022 Offshore Licensing Round on 1 December 2022. Minister of State in Foreign Trade and Business Sandra Husbands stated that interested companies will be invited to nominate acreage from available blocks for inclusion in the bidding process. In August 2022, the government department noted that the 2022 Barbados Offshore Petroleum Licensing Campaign was to launch on 1 November 2022 for a duration of 11 months, ending on 11 December 2023. This includes 22 blocks in the Barbados Exclusive Economic Zone. Officials from the Ministry had previously announced that the bid round was expected to take place in September 2022.

ADNOC Drilling announced it has signed a Sale and Purchase agreement (SPA) to acquire two additional jackups. The two new rigs have a combined cost of USD 140 million and will join the ADNOC Drilling fleet and commence operations by the end of 2022. The two jackups are understood to be the last two of the three Argent jackups ADNOC Drilling acquired from NT Rig Hold Co.

KeyFacts Energy Industry Directory: Esgian