Bassoe Offshore AS

10/16/2020 | News release | Distributed by Public on 10/16/2020 07:03

Bassoe Analytics weekly rig market round-up (week 42)

Oct 16, 2020

The past week has brought with it one brand new rig fixture plus a few notable contract extensions too. Meanwhile, several rigs finally commenced new contracts, some of which had faced delays due to the Coronavirus pandemic.

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

Rig Contracts

North Oil has declared the first one-year option under its agreement for jackup Valaris JU-110, which is operating in waters offshore Qatar. The rig is now committed until September 2021 with a further one-year option still available.

Bunduq Oil has secured a new contract for provision of jackup Aban VIII to work offshore the UAE for 240 days firm plus options.

Seadrill Partners has secured additional work for ultra-deepwater drillship West Vela in the US Gulf of Mexico with BP. The contract value for the firm portion is expected to be $23.8 million and the contract is expected to run from November 2020 until early April 2021.

ONGC and Aban Offshore are still in discussion in regard to finalizing a start date for jackp Aban II to commence the three-year contract offshore India. The rig has now entered a yard after completing its last contract, which was with Cairn Energy offshore India during August 2020.

Transocean announced a 180-day extension for its ultra-deepwater drillship Dhirubhai Deepwater KG1 with Reliance India. The additional term means that the rig is now firmly committed until June 2021.

Transocean has confirmed market rumors that its newbuild 20K BOP drillship Deepwater Atlas will not begin work with Chevron in the US Gulf of Mexico until H1 2022 instead of the previously planned Q4 2021. The operator has secured the rig for five years of work at a dayrate of $455,000.

Drilling Activities & Discoveries

Lundin is now scheduled to re-start drilling operations using jackup Valaris JU-290 offshore Norway around January 1, 2021. The rig will undertake a three-well infill drilling campaign for the operator at the Edvard Grieg field. The jackup has just completed a campaign with Lundin and has moved inshore Norway for stacking until January.

Northern Offshore newbuild GustoMSC CJ50 jackupEnergy Enticer has begun drilling for Qatargas at the Qatar Petroleum-operated North Field. The jackup is the first of three Northern Offshore units scheduled to commence long-term contracts with Qatargas on behalf of Qatar Petroleum.Gazprom has announced a new discovery at the number 5 exploration well on the Leningradskoye gas and condensate field, north-west of the major gas-producing province of the Yamal Peninsula. The well was drilled using COSL semisub Nan hai Ba Hao, also known as Nanhai 8, to 2,700m and flowed at a rate of 600,000 cubic metres of gas per day during testing. Gazprom will assess the discovery's potential before providing any upgrade to recoverable reserves of the Leningradskoye field.

Petronas has spudded the Slonea-1 exploration well using semisub Maersk Developer < /a>offshore Suriname in Block 52. The rig is committed for one firm well plus a one-well option. Serica Energy has commenced intervention activities on the Rhum-3 well offshore the UK, using mid-water semisub WilPhoenix. The operation is scheduled to take around 70 days to complete. The rig does not yet have any confirmed follow-on commitments in place.

ONGC is expected to commence drillingoperations offshore India using jackup Foresight Driller IX in December this year. The rig will be committed under a long-term agreement with the operator.

Premier Oil has commenced work using jackup Valaris JU-123 at the UK Tolmount development. The rig will drill a minimum of four wells during the one-year period and Premier also has three one-well options available under the deal should it wish to extend the agreement.

Diamond Offshore semisub Ocean Apex has passed to BP in preparation for drilling the Australian Ironbark-1 exploration well in the WA-359-P permit. The rig is being mobilized to the well location, with standard rig inspection and acceptance procedures being undertaken by BP. Mobilisation activities are expected to take approximately 10 days.

Shell has received consent from the Mexican authorities to drill the deepwater Xuyi-1EXP wildcat using Grupo R's semisub La Muralla IV. The work program will last 38 days from April - May 2021 and cost $33.2 million. The well's geological objective is at a total programmed depth of 3,319 meters developed in the Miocene, associated with a prospective resource of 1,012 MMboe.

BP has begun drilling operations at the Matapal project offshore Trinidad using ultra-deepwater semisub Maersk Discoverer. Matapal is on track for first gas in 2022. The rig is committed to BP for three firm wells and a one-well option, expected to keep it busy until August 2021.

The Norwegian authorities have given Equinor consent to drill exploration well 31/2-22 S in PL 090, targeting the Blasto prospect. The well is scheduled to take 32 days to drill, with an option for sidetrack with estimated at around 18 days, and will be drilled by the Seadrill harsh-environment semisub West Hercules.

Rig Mobilizations

SemisubValaris DPS-1 is moving from Australia to Singapore for stacking. The rig recently concluded a contract with Woodisde Australia and is currently being marketed for new assignments.

Vantage Drilling jackupTopaz Driller has arrived in Valletta port, Malta, from West Africa ahead of a new exploration campaign with ENI offshore Montenegro. The new contract is scheduled to last around 180 days and will begin in Q1 2021.

TPAO's newest ultra-deepwater drillship, Kanuni (ex-Sertao), has completed its reactivation shipyard program in Turkey and is now preparing to move to the Turkish Black Sea where it will join drillship Fatih for exploration activities.

Sapura Drilling tender-assist rigSapura Berani has been loaded onboard a heavy-lift vessel and is about to be mobilized from Malaysia to Namibia. The rig recently completed a drilling campaign with Petronas and is understood to be lined up for two commitments off West Africa, one of which is a contract with Foxtrot offshore Cote d'Ivoire.

Energy Transition

Neptune Energy will adopt Halliburton's DecisionSpace 365 well construction suite of cloud applications in a bid to consolidate all global drilling and wells activities, improve efficiency and significantly reduce non-productive time, leading to potential annual savings of more than $20 million. The three-year agreement - part of Neptune's digital subsurface program - will create a platform for Neptune's digital well program. It aims to reduce the duration for planning wells from weeks to days, automate engineering calculations and consolidate data currently held across multiple global locations.

Equinor has signed a Memorandum of Understanding (MoU) with Microsoft to explore ways to support the Northern Lights carbon capture and storage (CCS) project as a technology partner. Microsoft will explore using the project to enable the transportation and storage of captured CO2. The Northern Lights project comprises transportation, receipt and permanent storage of CO2 in a reservoir in the northern North Sea.

Financial

Seadrill has released a cleansing document related to its discussions with the NSN noteholders regarding the possibility of extinguishing the outstanding NSNs in exchange for certain secured collateral since August 30 2020. Discussions are ongoing.

News reports suggest that restructuring of local contractor Petroserv in Brazil is moving ahead. The process is driven by around 15 lenders and the reorganized company would among others get a new management team.

Noble Corporation has announced that a backstop commitment agreement has been approved by the bankruptcy court.

Oil Price

Oil prices increased on Wednesday, as Opec and its allies were seen complying with a pact to cut oil supply in September.

Other News

Borr Drilling has appointed Christoph Bausch as its new Chief Financial Officer, replacing Francis Millet with effect from November 1, 2020.

Newbuilds & Sales

Caspian Sunrise says that it expects to soon complete the acquisition of the submersible drilling barge Caspian Explorer on the terms approved by shareholders in February 2020. No contracts are in place for the future use of the drilling vessel, however the company is aware of 'potential interest in developing fields in the northern Caspian Sea previously drilled using the Caspian Explorer'. The drilling rig is designed to operate in shallow (2.5 - 5.5m) water with a maximum well drilling depth of 6,000m.

Knarr Drilling's deal for the Sete Brasil floaters has now been delayed to mid-November, from the previously scheduled date of early October. Knarr Drilling is a newly started drilling company established by Magni Drilling, in relation to the acquisition of the four Sete Brasil rigs. All four rigs, two semis and two drillships, will be contracted for 10 years with Petrobras.

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Data: Bassoe Analytics, Image attribution: Seadrill Partners.