Bassoe Offshore AS

09/18/2020 | News release | Distributed by Public on 09/18/2020 04:54

Bassoe Analytics weekly rig market round-up (week 38)

Sep 18, 2020

Over the past week there has been a wave of new offshore rig activity but most notably a new nine-month award for tender-assist rig Sapura Berani, while Seadrill jackup West Epsilon was bought by Well-Safe Solutions to be used for enhanced plug and abandonment projects from early 2021.

In case you missed it, you can access last week's rig market round-up here.

Rig Contracts

Sapura Drilling Holdings Limited has been awarded a contract for the provision of its Tender Assist Drilling Rig Sapura Berani by Foxtrot International. The rig will drill three wells for Foxtrot offshore Cote d'Ivoire commencing in Q1 2022 and lasting for a period of nine months plus one option of one well extension.

Shelf Drilling has now announced that it has entered into an agreement with China Merchants to terminate the bareboat charter arrangement and the option to buy, two CJ-46 jackups. The termination shall be effective upon the settlement of a total charter payment of USD 4 million, payable by the Shelf in September 2020.

Rig Demand

Pharos Energy has been granted approval to move ahead with the Vietnamese Te Giac Trang (TGT) full field development, including a six-well infill drilling campaign. Drilling is set to begin in Q4 2021 and is being carried out to increase gross production at TGT from the present ~15,000 boepd to around 20,000 boepd in 2022. The field lies at a water depth of 45m (148 ft) and therefore a jackup will likely be used.

OKEA is planning to drill an appraisal/production well at its Aurora discovery in PL195 offshore Norway next year. Water depth at the initial discovery well site is 373m. Aurora is a small gas discovery in the North Sea located west of the Gjøa field. OKEA estimates that the recoverable volumes are in the range of 12-28 mmboe.

Drilling Activities & Discoveries

Turkish Energy Minister, Fatih Donmez, confirms that TPAO's newest rig, ultra-deepwater drillship Kanuni (ex-Sertao), will soon be put to work in the Turkish Black Sea alongside drillship Fatih, which recently made a large gas discovery in the area with the Tuna-1 well.

Ultra-deepwater drillship Noble Sam Croft has commenced drilling of the Keskesi East-1 exploration well in Block 58 offshore Suriname for Apache. The well is located about 14km southeast of the Sapakara West-1 well.

Eni, together with partner BP, has made a gas discovery in the Great Nooros Area, offshore Egypt. The new discovery was located in the Abu Madi West Development Lease, in the conventional waters of the Nile Delta, offshore Egypt. The company made the discovery while drilling the Nidoco NW-1 exploratory well, in 16m of water and around 5km from the coast, and 4km north from the Nooros field, which was discovered in July 2015.

Mid-water semisubBorgland Dolphin has completed its one-well deal with Wellesley Petroleum in Norwegian waters and is heading inshore for stacking. The rig was used to drill the Schweinsteiger wildcat well, which spudded in late August and has been confirmed as dry.

Dubai Petroleum has now concluded operations using jackup Shelf Drilling Tenacious and the rig is now off hire. Meanwhile, jackup Shelf Drilling Mentor is due to conclude operations with the same company in early October. Both rigs had initially been due to continue working until 2022 but their contracts were early terminated.

TPAO will extend operations using drillship Yavuz in disputed Mediterranean waters off Cyprus until October 12, in a move that could stir tension between the Greek Cypriot government and Ankara. Yavuz will be accompanied by three other Turkish ships, according to a maritime notice that added 'all vessels are strongly advised not to enter' the area. Ultra-deepwater semisubMaersk Deliverer has arrived at the Ichthys gas field in the Timor Sea, off the northwestern coast of Australia, and is preparing to start drilling for Inpex under a three-year plus options contract with the operator.

Rig Mobilizations

Dolphin Drilling harsh-environment semisub Blackford Dolphin has commenced its mobilization from Norway to Mexico, ahead of starting a new 15-month deal with Pemex next month. It is understood the rig will stop off in Las Palmas on its way Mexico.

Ultra-deepwater drillship Stena Icemax < /a>has today departed Gibraltar and is bound for Las Palmas, Gran Canaria. The rig has new contracts lined up off the Bahamas and in Mexican waters.Ultra-deepwater drillship Valaris DS-12 has now departed Las Palmas and is en route to Angola, where it will begin a new four-well development drilling campaign with BP understood to be at the Platina field in Block 18. The deal also comes with four one-well options.

Borr Drilling jackup Saga has now arrived in Malaysia ahead of starting a new one-year plus option deal with PTTEP. Sister jackup Gunnlod arrived in Malaysia around two weeks ago and is also working for PTTEP.

Vantage Drilling jackupTopaz Drille r has been loaded onboard a heavy-lift vessel and is now on its way from Cameroon to Malta ahead of starting a new contract early next year. The rig will undertake 180 days of drilling offshore Montenegro for Eni.

Newbuilds & Sales

Well-Safe Solutions has announced its acquisition of the West Epsilon jackup from Seadrill, which the company intends to deploy specifically for enhanced plug and abandonment projects from early 2021. Well-Safe will start work immediately on a upgrade and modification program for the newly renamed 'Well-Safe Protec tor'. The news comes following the company's acquisition of the Well-Safe Guardian in April 2019 and adds to their growing portfolio of bespoke decommissioning assets.

Sete Brasil's creditors are due to meet this week to decide on the latest approvals of their judicial reorganization process. The deadline established for the company to comply with the requirements of the agreement signed with Petrobras and conclude the operation is 30 September.

Recycling company SOMAP has bought jackup Valaris JU-105 for USD 2.05 million. The 2002-built rig has been stacked since 2015.

Shelf Drilling has completed the sale of jackup Trident XIV to ME-ADS for an undisclosed sum. The rig has been renamed Anadolu and will be put to work at the Kuzey Marmara Underground Gas Storage Expansion Project offshore Turkey.

Financial Information

Valaris has announced that holders of over 70% in aggregate principal amount of its senior notes have now executed the Restructuring Support Agreement (RSA) and Backstop Commitment Agreement (BCA) versus the original 50%. The company has also agreed with the requisite Consenting Noteholders to extend the expiration of the joinder period where they can become backstop parties under the BCA from 10 September to 14 September 14, 2020.

Seadrill has acquired the minority holding of 33.76% of the share capital of Asia Offshore Drilling Limited ('AOD'). The consideration for the shares in AOD is USD 31,000,000, and it is expected that completion of the share transfer and payment of the consideration will occur by the end of September 2020. Following completion, Seadrill will, through its subsidiary Seadrill Rig Holding Company Limited, hold 100% of the shares in AOD. Meanwhile, Seadrill also announced that it has entered into forbearance agreements with certain creditors in respect of the group's senior secured credit facility agreements, senior secured notes, and guarantee facility agreement. The forbearance agreements will allow the company and its stakeholders more time to negotiate on the head terms of a comprehensive restructuring of its balance sheet that may involve a court-supervised process.

Energy Transition

As part of an overall sustainability strategy, Maersk Drilling has set an ambitious target of lowering the intensity of CO2 emissions from its drilling operations by 50% by 2030. The target is supported by Maersk Drilling's strategic focus on efficiency gains, which also leads to reduced CO2 emissions. Maersk Drilling estimates that about half the target can be achieved via further efficiency gains and known technical solutions and concepts, while the other half will be facilitated by investments in innovation in this space. The target will be measured as tonnes CO2 emissions relative to three parameters: contracted days, drilled meter, and revenue, with 2019 being the baseline year. In addition to the emissions reductions target, Maersk Drilling's sustainability strategy contains initiatives within a range of areas, including a target of increasing the share of onshore female leaders to 30% across all leadership levels.

Other

BW Energy now plans to utilise a converted jackup at its Ruche/Hibiscus development offshore Gabon instead of constructing and installing a new wellhead platform. The conversion concept is expected to reduce development capex, time to first oil and enable a substantial reduction to field-development elated climate gas emissions by re-using already existing energy infrastructure. A final decision to restart the Hibiscus/Ruche development is subject to lifting of COVID-19 restrictions to allow for efficient project execution, currently expected towards year-end 2020.

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Data: Bassoe Analytics, Image attribution: Sapura Energy.