Early termination for Seadrill’s Ivory Coast deal

Seadrill Partners has received an early termination notice from an unnamed operator for the West Vencedor rig contract offshore Ivory Coast.

Seadrill Partners secured a six-well contract, with three option wells, for the West Vencedor semi-submersible back in January 2019. The backlog for the firm portion of the contract was expected to be approximately $20 million with the start period expected in the third quarter of 2019 and running through 2Q 2020.

According to Seadrill Partners’ statement on Friday, the early termination notice was received prior to contract start, which was expected in the third quarter of 2019.

The unit had recently completed its work with Petronas in Myanmar and will now stay in Southeast Asia to be marketed for additional opportunities, Seadrill said on Friday.

Seadrill Partners is expected to receive a lump sum early termination payment in 3Q 2019 of approximately the amount of adjusted EBITDA that would have been earned under the firm term of the contract and backlog will decrease by $20 million.

West Vencedor is a purpose built semi-submersible self-erecting tender assisted drilling rig featuring 10k dual BOP, off-line pipe handling, stand building and designed to work on TLPs and SPARs in up to 6,500 ft of water with pre-laid mooring. The rig was built by Keppel FELS in Singapore in 2009.

Source: Offshore Energy Today


Barakah takes Petronas to court over licence suspension

Barakah said earlier this week in a filing with Bursa Malaysia that its wholly-owned unit PBJV had issued a notice of demand and dispute on August 5 to both Petronas and Petronas Carigali after the company’s license was suspended by Petronas for three years.

Namely, the three-year suspension, issued on July 8, was based on the grounds of adverse reports of PBJV’s performance under a contract for provision of underwater services for Petronas Carigali.

Barakah added that this suspension was issued after the completion of the contract. In response to the suspension, PBJV issued a notice to dispute the validity of the suspension.

The company said that the contract was successfully carried out and completed prior to the suspension. Also, Barakah stated that “upon completion of the contract, the positive appraisal was subsequently given by Petronas Carigali hence making the suspension unwarranted.”

With the license suspended, PBJV is unable to undertake or bid for new contracts from Petronas but it is still allowed to continue and complete its existing and on-going contracts with Petronas.

According to the offshore service provider, the amount of RM1.02 billion was based on the loss of future profits, reputation, and shares’ market price.

It is worth noting that Petronas and Petronas Carigali were given 14 days to comply with the demand.

Pacific Drilling clinches drillship extension in Mauritania

In its second quarter 2019 report on Monday, Pacific said that the contract for the Pacific Santa Ana drillship had been extended by Total for one well in Mauritania.

The contract starts in August and ends in September 2019. After that, in November 2019, the rig is scheduled to work for Petronas, also in Mauritania. This deal is scheduled to be completed in October 2020. Later, Total has two one-well options (each well estimated at approximately 60 days of work) whose start would follow contract with Petronas.

Pacific Drilling CEO, Bernie Wolford, said: “We added backlog for our fleet as an option was exercised for Pacific Santa Ana. The ramp-up of Pacific Khamsin, in preparation for its contract with Equinor, remains on schedule for start of operations in November.”

It is worth reminding that the 2011-built drillship received a contract to operate in Senegal for one firm well and in Mauritania for one option well with Total back in March and the contract started in April 2019.

According to information on Bassoe Offshore, the drillship’s dayrate under the part of the contract which expired at the end of July was $165,000.

Pacific Drilling reported a net loss for second-quarter 2019 of $73.6 million compared to net loss of $84 million in first-quarter 2019.

Pacific Drilling’s second-quarter 2019 contract drilling revenue was $76.4 million, which included $3.8 million in reimbursable revenue.

This compared to first-quarter 2019 contract drilling revenue of $65.9 million, which included $3.4 million in reimbursable revenue. The increase in revenue resulted primarily from the Pacific Santa Ana commencing operations with Total in Senegal.

Source : Offshore Energy Today

Staatsolie CEO not worried about dry holes. ‘Saudi Arabia, North Sea had them too’

Everybody in the offshore oil and gas business has heard of the new oil El Dorado – Guyana.

Guyana has been put on the oil and gas map by a series of offshore oil discoveries made by ExxonMobil, and is now expected to produce first oil from its Liza discovery in 2020.

While putting a spotlight on Guyana, Exxon has also, as a side effect, spurred the oil industry’s interest in what nearby Suriname’s geology has to offer.

Seasoned offshore oil explorers such as Equinor, Kosmos, Apache, and Exxon itself, have acquired acreage for Suriname, hoping to replicate the exploration successes made in neighboring Guyana.

However, the companies that have drilled offshore Suriname in the past year or so, such as Kosmos and Apache, have been unable to find oil.

This does not worry Rudolf Elias, the CEO of Suriname’s national oil company Staatolie, who is preparing the company for what many believe is going to be a big offshore oil find.

In a recent interview given to Offshore Energy Today Elias said Staatsolie was contemplating a public offering of a part of its shares to raise funds that would be used for the company’s participation in any significant offshore oil find.

He said that Staatsolie would probably need to shell out between $500 million and $1.5 billion if it is going to participate with 10-20 percent in an offshore oil find.

Elias has shared that the number would be around $1.4 billion if an oil discovery is made that is similar to ExxonMobil’s Liza find in Guyana. This field is due for the production start in 2020.

While preparing the company to be financially ready to take part in any future offshore development, OET asked if he was at all worried by dry wells drilled in the recent period.

“No, not at all…You will not hit oil immediately. You first have to understand the geology,” Elias said.

He said dry wells had been drilled even in Saudi Arabia and the North Sea before commercial discoveries were made.

Watch the interview, conducted by OET’s Femke Perlot-Hoogeveen, to learn more on what Staatsolie is doing to prepare itself and the local businesses for what is believed to be an imminent oil find, why the company is looking at mimicking practices from Colombia’s Ecopetrol and Malaysia’s Petronas, what the government should do ahead of an oil find, etc…

FAR gains approval to farm-out Gambian blocks to Petronas

The Government of The Republic of The Gambia has approved the assignment by FAR Gambia of a 40% interest in petroleum licences for offshore Blocks A2 and A5 to a subsidiary of Malaysia’s Petronas.

Under the terms of the farm-out agreement executed in February 2018, Petronas will fund 80% of the exploration well costs of the Samo-1 well up to a maximum total gross cost of $45 million, FAR said on Tuesday.

Earlier this month, following reprocessing and interpretation of 3D seismic data, detailed mapping of the Samo Prospect and detailed well engineering, FAR selected its final well location for the Samo-1 well.

In addition to the well costs, Petronas will pay FAR cash consideration of $6 million plus 80% of non-well back costs. The proceeds are subject to reconciliation and were estimated to be A$19 million at June 30, 2018. Petronas acquires a 40% working interest with FAR retaining 40% of its original 80% interest.

FAR’s Managing Director, Cath Norman, said, “By securing the approval of The Gambian Ministry of Petroleum and Energy, FAR has achieved another milestone towards its objective of drilling the substantial oil resource potential of the highly prospective Blocks A2 and A5 in The Gambia.

“We again thank the Gambia Ministry of Petroleum and Energy, the Gambia National Petroleum Company (GNPC), the Government of the Gambia and our broader Gambian stakeholders and look forward to working with them to drill Gambia’s first exploration well since 1979 with our coventurer, Petronas.”

FAR has secured a contract with a subsidiary of Stena Drilling who will provide and operate the Stena DrillMAX drillship to drill the Samo-1 well in late 2018. FAR estimates the Samo prospect contains prospective resources of 825mmbbls oil (best estimate, recoverable, 100%, unrisked).

FAR has identified and mapped an additional prospect (Bambo) and continues to interpret the seismic data in this highly prospective area with a view to revealing additional prospects and leads for future drilling.