Drillinginfo Offshore Digest for April 4, 2014
The drillinginfo working rig count this week stands at 1,828, made up of 1,716 land and 112 offshore rigs (US Gulf of Mexico). The number of contracted rigs in the Gulf, that is rigs currently working or committed to work, stands at 140.
ANKOR Energy has completed work in Eugene Island Block 208 with jackup ENSCO 90 and released the rig earlier this week. The rig is now under tow to Breton Sound Block 52 for the start of a multi-well contract with Talos Energy. The operator is expected to keep the rig busy into August.
Jackup Rowan Louisiana is now under tow to Main Pass Block 151 to begin a 35-day well for EPL O&G. The operator originally was going to use Rowan’s Joe Douglas jackup, but the permit was not ready and that rig secured other work, leading EPL to switch rigs.
The Rowan Louisiana
Jackup Hercules 212 has completed work in Grand Isle Block 19 and is now enroute to West Cameron Block 170 to begin the last of its three-well contract with Talos O&G. Upon completion, the rig will enter a shipyard for a planned 40-day stay for maintenance.
Ultra-deepwater drillship ENSCO DS-4 has arrive in the Gulf of Mexico from Brazil and will mobilize to location for BP shortly. The rig is now in South Timbalier Block 243 undergoing maintenance and training prior to moving to the Mad Dog field in the Green Canyon area. The rig is under contract with BP until July 2016.
Seadrill Ltd says it has been awarded new contracts worth $319 million for four jackups. The West Tucana will go to work for Cabinda Gulf Oil off Angola for a firm period of two years at a day rate around $230,000, which includes an $8.5 million mobilization fee. Work is set to begin in late November after the rig completes its current contract off Vietnam for Petrovietnam. Seadrill also secured a two-well plus two-option contract with Origin Energy for the West Telesto. Drilling off Australia is also scheduled to begin in the fourth quarter after work with Premier Oil is wrapped up. The day rate for the approximately 102-day firm portion of the contract is $304,000, inclusive of mobilization. The West Ariel has secured a one-year plus one-year option contract with Eni Congo for work beginning in early May. Day rate for the firm portion of the deal is pegged at around $244,000 including mobilization. Eni Congo has also extended its contract on the West Mischief for another 120 days starting in December. The day rate for the additional term will remain at the current $175,000. Finally, JVPC has agreed to take jackup West Prospero for a one-well deal off Vietnam at a day rate of some $162,500. Work on the 40-day well will start later this month after the rig finishes with Petrovietnam.
The West Ariel
Reports from Trinidad & Tobago are that two deepwater blocks received three bids in the country’s latest licensing round. A consortium of BHP Billiton and BG International bid for blocks TTDAA 3 and TTDAA 7, the former also receiving a bid from Repsol. There were no bids received for the other four blocks offered in the round. Blocks 3 and 7 are situated to the east of BHP’s other deepwater blocks, TTDAA 5 and TTDAA6 near the Guyana border. The Deepwater Bid Round was launched August 14, 2013, with winners expected to be announced in May.
In Round Zero in Mexico, Deputy Minister for Hydrocarbons Lourdes Melgar has indicated that seismic studies undertaken by Pemex do not demonstrate sufficient capacity to award the state oil company all the high potential deepwater Perdido acreage it requested, but that the agency will “most likely” approve Pemex’s request to keep all of its shallow water acreage. Pemex submitted requests to retain 83% of its proven and probable reserves for Round Zero, the first stage of the energy reform. Following Round Zero, it is now reported that Mexico will have enough prospects to hold at least 10 bidding rounds covering around 20,000 sq km each, and that the annual offerings will probably begin in June 2015. It is expected that first contracts will be signed in early 2016.
Genel Energy and White Rose Energy have farmed in for a 15% ownership in Kwanza Basin deepwater blocks 38/11 and 39/11 off Angola, spending some $281 million to do it. Statoil operates both blocks and is now preparing to spud the Dilolo-1 (Block 39) in the second quarter. Following that well, Statoil will drill its second commitment well in Block 38 and the operator will participate in a total of eight commitment wells over the next 2-3 years in the Kwanza Basin. Deepwater drillship Stena Carron has been contracted and will begin drilling this month. The rig will operate under a three year plus two-year option contract for Statoil. Along with BP and Total, the group completed the world’s largest 3D seismic survey (26,300 sq km) across deepwater Blocks 24, 25, 38, 39 and 40 in January 2013.
The Stena Carron
Off Tanzania, Statoil is continuing with drilling operations on Block 2 appraisal well Zafarani 3, which was spud on February 21. The well comes on the heels of discoveries from the first two wells on the block. Statoil is using Transocean ultra-deepwater drillship Discoverer Americas, which is under contract until May 2016, for the drilling. After the current well, Statoil is planning exploration wells at Binzari and Piri in the second quarter and an appraisal well at Tangawizi in the third quarter. Reports are that Statoil and partner ExxonMobil are also considering drilling a further five wildcat wells on Block 2 between the 3Q 2014 and 2Q 2015.