OGV Energy project updates

Awards

NAGA 4 secures Shell Malaysia jackup campaign

MALAYSIA: Velesto has received a Letter of Award (LOA) from Shell for a contract for jackup NAGA 4 for a seven-well drilling campaign commencing in late third quarter 2021. The contract is valued at USD 17.68 million with a duration of approximately nine months. The wells have an expected commencement date between 15 August 2021 to 15 October 2021. NAGA 4 is an independent-leg cantilever jackup that has a drilling depth capability of 9,144 m (30,000 ft) and has a rated operating water depth of 122 m (400 ft).

The unit is currently on a seven-well campaign with Mubadala Petroleum in Malaysia until June 2021.

Maersk Viking picks up Shell Malaysia tender

MALAYSIA: Shell Malaysia has awarded a contract to drillship Maersk Viking to drill four development wells in the third phase of the Gumusut-Kakap project, offshore Malaysia.  The charter is expected to commence in December, with an estimated duration of 150 days. The firm contract value is approximately USD 34 million, including a mobilisation fee. This contract includes five additional one-well options for work offshore Malaysia, the Philippines, and Brunei Darussalam. The unit is currently drilling for Brunei Shell Petroleum before it heads to South Korea to drill one well for KNOC until August.

Market News

Energean refreshes jackup search for Greek work scope

GREECE: Market sources have indicated that Energean has refreshed its tender for a jackup to work at the Prinos field, offshore Greece, with commencement now expected in second quarter 2022.  It had initially been planned for first quarter 2021. The programme covers the drilling of three wells at the Lambda platform plus the workover/side track of six wells at the Alpha platform, with duration of 60 days per well at Lambda and 45 to 70 days per well at Alpha. There are also two optional scopes covering up to six wells at Lambda with duration of 60 days each, and up to six wells with duration of 60 days per well from the Beta platform. Water depths at the Prinos location are around 41 m (135 ft).

Three ADNOC Drilling-owned rigs cold stacked

UAE: ADNOC Drilling has three jackups - Beynouna, Brakah and Delma - cold stacked, and the future of the units is under discussion.  It is understood the sale of the units is being considered. The three rigs were released from operations with ADNOC offshore in 2020. They were all built in the early 1980s and are of the Baker Marine BMC-150-IC design. ADNOC Drilling currently owns 21 jackups, with an additional four the subject of final discussions for purchase. Of the 21 owned units, 10 are over 35 years old.

NOC concludes four-jackup tender

QATAR: North Oil Company (NOC) has concluded a tender for four jackups for operations off Qatar starting in 2021 and 2022.  The operator has notified winners and Letters of Award are expected in the next few days. The contracts for four units will be three years with two one-year extension options. The tender is against three incumbents and for one incremental rig. The expected commencement of the first unit against incumbents is September 2021, then December 2021 and February 2022, respectively. The incremental rig is due to commence in first quarter 2022. The operator is seeking jackups of the BMC category or equivalent 375/400-ft capable.

NOC currently has five rigs contracted, the fifth being Emerald Driller under an 11-month sublet to Total from second quarter 2021.

ADNOC renames Shelf Drilling Journey 'Al Nouf' and finalising further purchases

UAE: ADNOC Drilling, a subsidiary of the Abu Dhabi National Oil Company (ADNOC), has renamed jackup Shelf Drilling Journey as Al Nouf.  The unit is at Lamprell shipyard being prepared for operations offshore Abu Dhabi. It is understood the rig will soon be awarded a long-term contract by ADNOC Offshore. A drilling start date has not yet been announced.

The newbuild unit was bought by ADNOC from Shelf Drilling for USD 77.6 million. The 107 m/350-ft rated, GustoMSC CJ46-X100D design rig had not done any drilling since it was delivered to Shelf Drilling in 2016 from China Merchants Heavy Industry in China.

Meanwhile, ADNOC Drilling is in the process of purchasing Deep Driller 3 and two more China Merchants Heavy Industry rigs of the GustoMSC CJ46-X100D currently in China being prepared for ADNOC.

OMV NZ jackup tender concluded

NEW ZEALAND/NORTH SEA: OMV New Zealand has concluded and informed unsuccessful bidders of the decision for its jackup campaign in about 110 m (360 ft) of water.  It is understood a heavy-duty jackup from the North Sea has been selected. The work scope consists of five wells plus a one-well option or six wells plus four one-well options. Meanwhile, in the recently published annual report, key projects in New Zealand which involve drilling include up to six sidetracks in the Maui B IRF Phase 3 infill drilling campaign, a Toutouwai appraisal well planned for early 2022, as well as the ongoing Maui A Crestal infill campaign.

Greatdrill Chetna rolls off ONGC contract

INDIA: Jackup Greatdrill Chetna has finished its three-year contract with ONGC and has mobilised to Mumbai.  The unit emerged as the sole bidder under Category III of ONGC's recent tender for an HPHT-capable 300 ft IC jackup of any design. A letter of award for the new three-year campaign is expected soon. The 2009-built Keppel FELS KFELS B Class unit is currently off contract at an anchorage location in Mumbai.

CPOC issues jackup tender

MALAYSIA/THAILAND: Carigali-PTTEPI Operating Company (CPOC) has issued a jackup tender for work within the Malaysia-Thailand Joint Development Area (MTJDA) in the Gulf of Thailand.  Drilling is scheduled to start between June and July 2022, and the work scope covers one year plus two one-year options. Based on a market survey issued for this work scope in October 2020, the drilling campaign will take place in Blocks B-17, C-19, and B-17-01. Tender responses are due on 6 May 2021.

PTTEP Myanmar issues enquiry for TAR in Q4 2022

MYANMAR: Market sources indicate that PTTEP Myanmar has issued a request for expressions of interest (EOI) for a tender-assist (TAR) rig to carry out development drilling on Zawtika 1D, in the Andaman Sea, in fourth quarter 2022.  It is understood while the number of wells was not indicated, the duration of the scope is 15 months, and the operator will likely launch an invitation to bid in mid-2021. Earlier plans indicated a scope of 47 wells to be drilled from four new wellhead platforms (WHPs) over an estimated duration of one year. According to the WHPs' construction schedule, the first jacket (for WHP-12) is expected to roll out of the fabrication yard and be installed on spud location by 1 December 2022 and the second (for WHP-13), a month later on 1 January 2023. The third and fourth jackets (for WHP-14 and WHP-15), will be installed by 1 March 2023.

Shelf Drilling Tenacious finishes Oman wells and demobilises back to UAE

OMAN: jackup Shelf Drilling Tenacious is mobilising back to the UAE after completing its drilling campaign with Masirah Oil in Oman.  The rig drilled two development wells in the Yumna field, and three exploration wells located near the Yumna Field, namely Zakhera, Yumna East and Yumna North. The exploration campaign found good reservoir sands but the reservoirs were water filled for the Yumna East and North wells, and Zakehra resulted in good oil shows but poor sand quality.

Masirah Oil announced the exploration wells were drilled for about USD 3.5 million each, and says low-cost drilling will help further de-risk additional exploration prospects in Oman's Block 50.

Three Borr Drilling units remain available for charter from Cameroon

CAMEROON: Borr Drilling jackups Groa, Gerd and Frigg remain warm stacked and available from Limbe, Cameroon.  The 2013-built KFELS Super A Class-design Frigg has been idle since January after working under charter with Shell Nigeria since mid-2019. It is berthed alongside 2018-built stablemates Gerd and Groa which have been idle since second quarter 2020 when their respective charters with ExxonMobil offshore Nigeria were early terminated.

Demand

Mercuria expected to issue tender ahead of Congo appraisal

REPUBLIC OF CONGO: Industry sources have indicated that Mercuria Energy Group has approached the market with a jackup requirement for a drilling programme offshore Republic of Congo beginning in 2021.  The exact scope of the work has not been outlined, however, it is understood the operator has plans for an appraisal programme at the Lidongo X Marine 101 field. Water depths on site are approximately 45 m (148 ft). A tender is expected to be issued in due course.

Husky China set to drill later this year

CHINA: Market sources indicate that Husky China is now looking to drill one well using a jackup offshore China later this year, after the requirement was postponed from last year.  Husky, which was renamed Cenovus Energy, completed the tender process last year and has already made an award. It is not known yet which rig will be used, but will probably be one already located in China. Apart from the deepwater Liwan field that Husky operates, the operator also has production sharing contracts for two exploration blocks, 15/33 and 16/25, in the Pearl River Mouth Basin.

Operational

Aban IV on suspension due to COVID-19 on board

ABAN: Operations on jackup Aban IV have been suspended due to an outbreak of COVID-19 on board.  The unit is on a three-year contract with ONGC. The 37-year old Baker Marine BMC-300-IC unit will be occupied until early 2023.

SinoOcean Prosperous set to start work end-April

CHINA: Jackup SinoOcean Prosperous (ex-Energy Engager, hull N610) is set to start work at the end of April, offshore China.  The Le Tourneau Super 116E Class unit, which was delivered by COSCO Dalian last week, will be operated and managed by COSL. The jackup was ordered in 2014, is almost ready to go and has been being actively marketed for domestic operations. It is among the 34 drilling units listed on SinoOcean's website.

ExxonMobil returns to drilling Uaru appraisal well with Noble Don Taylor

GUYANA: ExxonMobil has moved drillship Noble Don Taylor to the Uaru-2 appraisal well in the Stabroek Block.  The ultra-deepwater unit left its previous location in the block on 3 April and arrived at Uaru-2 a couple of days later. The top-hole portion of this appraisal well has already been drilled, which was done by drillship Stena DrillMAX in early March.

Noble Don Taylor is working for ExxonMobil under a one-year charter that was originally slated to run into mid-November 2021. However, the operator recently shuffled around its term with Noble's rigs in Guyana and the drillship is now booked through the end of December 2022.

Deepwater Nautilus to start Myanmar campaign in April

MYANMAR: Transocean semi Deepwater Nautilus is expected to start its Posco Daewoo drilling campaign on Block A-1 for the Shwe Phase II development project before the end of April.  The unit is currently en route and will likely arrive late next week. The workscope includes three firm wells plus three option wells. This will keep the unit busy until late August, at the earliest. The unit will complement the operations of on-hire Diamond Offshore semi Ocean Monarch for the Shwe Phase II drilling campaign.

Norbe VI moved to Roncador by Petrobras

BRAZIL: Petrobras has mobilised Ocyan semi Norbe VI from the Marlim field to the Roncador field, both of which are in the Campos Basin.  The 2,400 m/7,874 ft-equipped unit had been working at Marlim since early March, but left there on 3 April and made its way north to the Roncador field, where it arrived two days later. The rig appears to have re-entered development well 7-RO-134DB-RJS in 1,848 m (6,063 ft) of water.

Norbe VI is well into the second year of its two-year contract with Petrobras. The rig is committed to the operator through the end of December 2021, after which it is available for charter.

Valaris Renaissance to remain in Mexico this month

MEXICO/BRAZIL: Drillship Valaris Renaissance is expected to remain in Mexico until May after recently completing a two-well drilling project for CNOOC International.  The rig is currently on standby off Ciudad del Carmen. It is understood Valaris Renaissance will move to Brazil for a two-well charter with four one-well options with Total.

J. T. Angel finishes ONGC campaign

INDIA: Shelf Drilling jackup J.T. Angel has concluded a three-year contract with ONGC and has been released.  The unit will soon demobilise to port and has been offered in a recent tender to ONGC. The rig is a 1982-build unit of the Friede & Goldman L-780 MOD II design.

Fatih headed for next exploration assignment in Turkish Black Sea

TURKEY: TPAO drillship Fatih is mobilising to the Amasra-1 well site to continue exploration drilling activities for the operator in the Turkish Black Sea.  It recently completed the Turkali-2 well at the Sakarya field before a short stay inshore. Sister rig Kanuni will undertake well testing operations soon. Meanwhile, sister rig Yavuz remains idle off Tasucu where it has been berthed since early October 2020.

Licensing, regulatory and well results

Colombia launches new licensing round, includes Pacific blocks

COLOMBIA: The National Hydrocarbons Agency (ANH) has kicked off a new licensing round for this year called Ronda Colombia 2021.  Through this round, 32 blocks will be available, 9 of which are offshore, 5 in deepwater parts of the Caribbean and 4 off Colombia's Pacific coast. Twenty of the blocks will be available as exploration and production (E&P) licenses, while the other 12 will be technical evaluation contracts, which can later be converted to E&P licenses.

Interested parties will have until 31 August to submit qualification documents with the approved participants being announced on 11 October. Bids will be due by 30 October, which can receive counter offers by 15 November. Winning bids are scheduled to be announced on 2 December.

Corporate

Petrobras to acquire BP's stake in six Foz do Amazonas Basin blocks

BRAZIL: Petrobras has agreed to take BP's interest in six blocks in the Foz do Amazonas Basin: FZA-M-57, FZA-M-59, FZA-M-86, FZA-M-88, FZA-M-125, and FZA-M-127.  Five of these blocks - all but FZA-M-59 - used to be operated by Total with Petrobras and BP as partners, but following a series of regulatory setbacks for the French company, it decided to exit the acreage. As a result, back in September Petrobras agreed to take Total's 40% stake and assume operatorship. Now the Brazilian company will acquire BP's 30% stake in these five blocks, giving Petrobras 100% interest.

In the same deal, Petrobras will also be acquiring BP's 70% operating stake in Block FZA-M-59. Petrobras already holds the other 30% share in that block.

The completion of the entire transaction for all six blocks is subject to approval by regulatory authorities. Petrobras also explained that this deal is in line with its Strategic Plan 2021-2025, which provides for new exploratory fronts outside the Southeast basins (Campos and Santos), and is part of the company's portfolio management process, prioritising investments in world-class assets in deep and ultra-deep waters.

Read the latest issue of the OGV Energy magazine HERE.