This week, Shelf Drilling has confirmed new contract awards for two jackups in Nigeria, adding a total of five years of firm period. Meanwhile, operators in Norway are preparing new wells for Odfjell Drilling, COSL, and Saipem semisubs.

By Nermina Kulović Čilić, Esgian

Contracts

Shelf Drilling has secured new contracts for its 350-ft jackups Shelf Drilling Achiever and Adriatic I offshore Nigeria. The combined contract value for the five-year total firm period added for the two rigs, excluding mobilisation and demobilisation revenue, is $234 million. The Shelf Drilling Achiever, which recently mobilised to West Africa from the Middle East, has now fully secured a three-year contract with an undisclosed operator offshore Nigeria, following a letter of award announced in September 2024. This contract also includes an option for up to two years at rates to be mutually agreed. The rig will start operations under the new contract in October 2024. The 350-ft Adriatic I has secured a two-year extension, commencing February 2025 in direct continuation of the rig’s current contract in Nigeria. A one-year option is also included.  Adriatic I has been working on its current contract offshore Nigeria since October 2023. According to information from the Nigerian Upstream Regulatory Agency, the rig is working for Conoil.

Drilling Activity and Discoveries

The Norwegian Environment Agency (Miljødirektoratet) has received an application from Aker BP for permission under the Pollution Act to drill the delineation well 25/1-14 Omega Alfa in the North Sea, using Odfjell Drilling's 10,000-ft semisub Deepsea Stavanger. The distance of the well from the land is 154 km. According to Aker BP, no vulnerable benthic fauna has been identified in the area, but the well is located 35 km away from the sandpiper habitat Vikingbanken. Drilling of the well is expected to start on 1 April with a duration of 92 days. The type of oil in the reservoir is expected to be similar to the Breidablikk oil. The well is planned with four well paths (Omega, Alfa, Alfa Sør and Sigma NE), and the main purpose of the well is to confirm re-migrated oil accumulations after the gas production at Frigg and Øst Frigg.

The Norwegian Ocean Industry Authority (Havtil) has granted Equinor consent for exploration drilling in block 6610/7 in the Norwegian Sea. The consent is related to the drilling of the wildcat well 6610/7-3, targeting the Arkenstone prospect, which is located in production licence 1014. The consent also includes the drilling of pilot hole 6610/7-U-1. The well will be drilled using Odfjell Drilling’s 10,000-ft semisub Deepsea Atlantic, which is under a long-term contract with the operator. The water depth at the site is 230 meters. Equinor has already secured a drilling permit for the well.

The Norwegian Ocean Industry Authority (Havtil) has granted Aker BP consent for exploration drilling in block 6507/2 in the Norwegian Sea. The well 6507/2-8, targeting the prospect named Kongeørn, is located in production licence 942. Aker BP is the operator of the licence and PGNiG Upstream Norway and Equinor are its partners. The well will be drilled with Odfjell Drilling’s 6,560-ft semisub Deepsea Nordkapp in water depths of 400 meters.

The Norwegian Ocean Industry Authority (Havtil) has granted Vår Energi consent for exploration drilling in block 7122/9 in the Barents Sea offshore Norway. The consent is related to the drilling of a well named 7122/9-2, targeting the Elgol prospect, which is located in production licence 1131. The licence is operated by  Vår Energi in partnership with Petoro, Equinor, and Aker BP. The water depth at the site is 415 meters. The well will be drilled with the 4,921-ft semisub COSLProspector. The rig has recently started its two-year firm contract with Vår Energi in the Barents Sea and received an Acknowledgement of Compliance (AoC) from Havtil.

The Norwegian Environment Agency (Miljødirektoratet) has received an application from Aker BP for permission under the Pollution Act to drill exploratory well 6405/7-4 Rondeslottet in the Norwegian Sea with Saipem's 10,000-ft semisub Scarabeo 8. The well’s distance to land is 158 km (Smøla). It is located in production licence 1005, which is operated by Aker BP with Vår Energi and Shell participating as partners. Exploration well 6405/7-2 S / 6405/7-3 S Rondeslottet in the Norwegian Sea was drilled in the summer of 2023, but due to operational problems, the well was temporarily suspended and plugged and abandoned before drilling the reservoir section. A new exploration well 6405/7-4 Rondeslottet has been moved approx. 500m east of the original well location. Scarabeo 8 is expected to start the drilling of the well in January 2025 at the earliest, with a duration of 55 days. A potential oil discovery is assumed to have similar fluid properties as Fram crude oil. The rig has recently secured a one-year contract extension with the operator, which will keep it busy through 2026.

China's CNOOC has started production from the Bozhong 19-2 oilfield development project in Bohai Bay. The project features a new central processing platform along with four unmanned wellhead platforms, with an average water depth of 20 metres at the site. A total of 59 development wells are planned, including 34 production wells and 25 water injection wells. While CNOOC did not disclose the rigs involved, China's Maritime Safety Administration stated in July that COSL's 300-ft jackup Nanhai 1 would be drilling development wells at the site between early July and late December 2024. CNOOC expects the project to reach peak production of approximately 18,800 barrels of crude oil per day by 2025.

The Norwegian Offshore Directorate (NOD) has granted Vår Energi a drilling permit for two wells in the Barents Sea offshore Norway. The drilling permit is for wells 7122/7-8 and 7122/8-3 S, located in production licence 229 operated by Vår Energi in partnership with Equinor. The wells will be drilled with the 4,921-ft semisub COSLProspector, which has recently started its two-year firm contract with the operator with further options thereafter.

Mobilisation/Rig Moves

Noble 12,000-ft drillship Ocean BlackRhino has arrived in Las Palmas in the Canary Islands, where the rig will spend around 80 days in the yard; undergoing its five-year special periodic survey and being upgraded with a managed pressure drilling system. The rig finished drilling the Atum-1 well for Apus Energy offshore Guinea-Bissau in late September 2024 after around a month of work. Ocean BlackRhino’s next contract is with Beacon in the US GOM, scheduled to begin in the first quarter of 2025. This was fixed prior to Noble completing its acquisition of Diamond Offshore.

Saipem 12,000-ft drillship Santorini is mobilising from Côte d'Ivoire, where it has been working for Eni, to Namibia. The rig is expected to arrive in Namibian waters by mid-October. Market sources have indicated that Santorini has been sublet from Eni by Galp Energia for work offshore Namibia. Galp will conduct a four-well campaign to explore and appraise the Mopane Complex, following up the Mopane exploration campaign that concluded in April 2024. During the previous exploration campaign, Galp encountered oil at the Mopane-1X and Mopane-2X wells. The next campaign is to begin this quarter and include two exploration wells and two appraisal wells. Santorini has been working for Eni since March 2022. In April 2023, Saipem secured a two-year contract extension for the rig with Eni, starting in August 2023 and valued at $280 million. Eni has used the rig for work in the US GOM, Egypt, and Côte d'Ivoire.

Eldorado Drilling's 12,000-ft drillship Zonda has left the Seatrium yard in Singapore and will make a stop in South Africa before heading to Brazil to start a long-term contract with Petrobras. Eldorado Drilling took delivery of the drillship from Samsung Heavy Industries in South Korea in March, after which the rig was mobilised to Singapore to undergo contractual upgrades. Pelago Management, a company overseeing the rig from delivery to operational readiness and beyond, stated Sunday that the work in Singapore was completed, including a successful completion of sea trials in the South China Sea. According to Pelago, the drillship underwent the installation of critical systems such as CMC and MPD, ROV enhancements, and a cuttings dryer system, upgrades to the DP System, vessel management system, and drilling control system. The rig's six thrusters were also modified, and adjustments were made to ensure compliance with Brazilian regulations and industry standards. “[The drillship] is now prepared for the next phase, which includes its voyage to Brazil and finalising the acceptance programme with Petrobras,” Pelago Management said. AIS data shows that the drillship left Singapore on Saturday, 5 October, with its next stop being Cape Town, South Africa, where it is expected to arrive on 2 November. The rig will then move on to Brazil to begin a three-year contract with Petrobras. The Zonda will be managed by Ventura Offshore during this Brazilian work.

Greatship’s 350-ft jackup Greatdrill Chetna has completed its contract with ONGC off the west coast of India. The rig is now on the move towards an anchorage in Mumbai, where it will undergo minor repairs ahead of its next contract with Cairn in December 2024. Greatship secured a six-month contract with Cairn in September 2022, at a dayrate of approximately $90,000. Cairn also holds an option for a six-month extension, followed by an additional three-month extension option.

NOPSEMA has accepted ExxonMobil's environment plan for the plugging and abandonment of 26 wells across 12 locations in the Gippsland basin. Esso, ExxonMobil's Australian subsidiary, submitted an environment plan in January for the plugging and abandonment (P&A) of the 21 platform wells and five subsea wells. The plan was accepted on 8 October 2024. At the time of submission, Esso stated that the earliest start date for the P&A programme was October 2024, for a total duration of approximately 12-16 months, and the expected completion in early 2026. The company will use the 400-ft Valaris 107 jackup rig for the project. The rig recently completed its P&A work for Santos in Western Australia. According to AIS data, the rig was loaded onto the GPO Amethyst heavy lift vessel last week, and the vessel began its journey from a site off Malus Island, Western Australia, towards Melbourne on Wednesday. Its estimated arrival date is 25 October 2024.

Other News

Hibiscus Petroleum has completed the farm-in into one of the largest exploration blocks offshore Peninsular Malaysia, the PM327 block. In August, Hibiscus Petroleum agreed to farm into Petronas Carigali's PM327 offshore block in Malaysia through its subsidiary Straits Hibiscus. Hibiscus Petroleum Berhad stated Monday that regulatory approvals from Petronas, through Malaysia Petroleum Management, had been obtained and conditions precedent fulfilled as of 30 September 2024, thus achieving completion of the farm-in. The block, in which Hibiscus Petroleum now holds a 30% stake, is located to the south of the PM3 Commercial Arrangement Area (PM3 CAA) PSC, an area between Malaysia and Vietnam, which is operated by another Hibiscus Petroleum subsidiary. The PM327 PSC covers an area of more than 12,500 square kilometres, with water depths ranging between 20 and 75 metres. Exploration activities in the block started in 2023 and the programme includes the acquisition of new 3D seismic, reprocessing of existing seismic data and the phased drilling of exploration wells, Hibiscus said previously.

The Norwegian government has reported that the state's net cash flow from petroleum activities is estimated to be 680 billion NOK in 2024. These revenues go into the Norwegian Government Pension Fund Global and are expected to provide approximately 20 billion NOK into future budgets. According to the government, the expected revenues from the petroleum industry in 2024 are lower than in 2023, when the state’s net cash flow was 978 billion NOK. The decline is mainly because of lower estimates for gas prices compared to last year. Oil and gas production is expected to remain relatively stable towards 2030. In the national budget, the government expects the total Norwegian petroleum production in 2024 to be 239 million standard cubic meters (Sm3) of oil equivalents, while the production is expected to be 243 million Sm3 in 2025. In the national budget, the estimate for net cash flow to the state for 2025 is 643 billion NOK. Investments in the petroleum industry are estimated at 254 billion NOK in 2024. This includes both new field developments and investments in producing fields. Many ongoing development projects also contribute to high-capacity utilisation in the service and supply industry, and high investments are expected over the next two years. Equinor, the state-owned giant, stated that, in the proposed National Budget for 2025, the Ministry of Energy listed the status of 13 Equinor-operated projects currently under development or recently completed. The projects in question have a total investment framework of 198 billion NOK, from commencement to commissioning. These 13 projects included in the National Budget include Breidablikk, Gina Krog alternative oil export, Halten Øst, Johan Castberg, Kristin Sør phase 1, Oseberg gas phase 2 and power from shore, Sleipner power from shore, Troll Vest electrification, Irpa, Verdande, Snøhvit Future, Njord Electrification, and Eirin.

The Norwegian Ocean Industry Authority (Havtil) has granted an Acknowledgement of Compliance (AoC) to COSL Drilling Europe for the 4,921-ft semisub COSLProspector. COSLProspector is a semisubmersible drilling unit built at CIMC Shipyard in China in 2014. The Norwegian regulatory framework requires that all mobile facilities registered in a national ship register must have an AoC to participate in petroleum operations on the Norwegian continental shelf (NCS). The AoC is mandatory for drilling, accommodation, and well intervention units, as well as FPSO vessels. Havtil has assessed that petroleum activities can be carried out with the COSLProspector unit within the regulatory framework. Therefore, the regulator issued the AoC on 4 October 2024. The validity of this AoC is contingent upon COSL Drilling Europe ensuring that the rig, and relevant parts of the company’s organisation and management system, are maintained such that conditions and assumptions in Havtil’s decision are safeguarded. As recently reported, after months of preparations that followed the rig’s arrival from China, the semisub left the yard in Norway late last month, heading to Vår Energi’s Goliat field in the Barents Sea. It arrived on location on 6 October.

Chevron has decided to suspend the expansion work at its Leviathan gas field until April 2025 due to intensifying conflict in the region. Leviathan is a large deepwater gas field located in Israel, approximately 120 km off the Mediterranean coast. It started production in December 2019, and its expansion plan was approved in August 2024. Chevron operates the field with a 39.66% interest, alongside NewMed Energy (45.3%) and Ratio Oil Corp. (15%). Additionally, the company operates the Tamar gas field, which is also located offshore Israel in the Mediterranean and holds a 25% interest.

Vantage Drilling has submitted an application for the listing of its shares on Euronext Growth Oslo, part of the Oslo Stock Exchange. The company expects its first listing date to be the week of 21 October 2024, subject to final approvals and share registrations. Vantage stated that the purpose of the listing is to facilitate increased liquidity in the company's shares, provide improved capital markets access and attract equity analyst coverage. The company is not contemplating a concurrent equity offering. Vantage recently agreed to sell the 375-ft jackups Soehanah and Topaz Driller to ADES, though it will continue to manage the units for three years post sale. The company owns the 12,000-ft drillship Platinum Explorer and will remain part owner of the 12,000-ft drillship Tungsten Explorer via a joint venture with TotalEnergies.

Malaysia's Petronas is set to commence 3D seismic acquisition on Block 63 offshore Suriname as part of its initial exploration efforts in the area. The company has submitted an Environmental Impact Statement (EIS) to Suriname's National Institute for Environment & Development (NIMOS) for approval to acquire 3D seismic data over the Ironman prospect and surrounding areas within Block 63. The survey is expected to begin in the coming weeks and will last approximately 150 days. The primary target is a Cretaceous carbonate play located at 4,500 metres depth. Exploration drilling of the Ironman prospect is anticipated to take place in late 2027, following the completion of this first phase, which is scheduled for December 2026. Petronas acquired Block 63 in December 2023 and holds a 100% interest. The company also operates blocks 48 and 52, with the latter hosting several discoveries, including Sloanea-1, Roystonea-1 and Fusaea-1. Additionally, the operator has interest in Block 53. These operations are expected to keep Petronas active in the region for the next several years, as it is expected to further assess the Fusaea-1 discovery and explore potential development options for the Sloanea discovery.

Original article   l   KeyFacts Energy Industry Directory: Esgian