Drilling & Completion News

Transocean secures $252 million contract from Beacon Offshore for newbuild drillship

Transocean recently received a $252 million firm contract from Beacon Offshore Energy (BOE) for its newbuild ultra-deepwater drillship, the Deepwater Atlas, including a mobilization fee of $30 million. Additionally, the contract provides for a significant performance bonus opportunity based on agreed operating metrics.

This award results from the final investment decision of BOE and the Shenandoah working interest owners to sanction the previously announced Shenandoah project in the US Gulf of Mexico.

The Shenandoah program comprises two phases. Once delivered from the shipyard, the Deepwater Atlas is expected to commence operations in Q3 2022, initially using dual BOPs rated to 15,000 psi. The initial drilling program is expected to last approximately 255 days and result in approximately $80 million of contract drilling revenue.

Upon completion of the initial drilling program, a 20,000-psi BOP will be installed on the rig, making it Transocean’s second asset with a 20,000-psi-rated well control system. The BOP installation and commissioning is expected to last 45 to 60 days, contributing approximately $17 million of revenue. Following the 20,000-psi BOP installation, the Deepwater Atlas will commence the second phase of the project – the well completion program. This phase is expected to last approximately 275 days.

The COSLPromoter semisubmersible will return to drill for Equinor in the North Sea starting in spring 2023. The rig had previously drilled for Equinor from April 2013 to April 2021.

Equinor hires COSLPromoter to drill on Statfjord Øst

Equinor has awarded COSL Offshore Management a contract to drill four wells on Statfjord Øst with the COSLPromoter semisubmersible starting in spring 2023. In addition, the rig has options to drill five wells for Statfjord satellites.

The contract value is estimated at around $56 million for the fixed part of the contract, which has an estimated duration of 220 days. The value includes drilling and completion services, fuel, treatment of wastewater, handling of cuttings, and upgrading of the rig by installing an automated drilling control system. Additional services include running of casing, remote-operated vehicle, as well as mobilization and demobilization.

After completion of the preliminary program, the companies intend to extend the cooperation by continuing options. The COSLPromoter is currently in hot lay-up at the CCB base outside Bergen. It had drilled for Equinor on the Troll field from April 2013 to April 2021.

Maersk Discoverer secures extension offshore Guyana

CGX Resources along with joint venture partner Frontera Energy Guyana Corp have exercised an option for Maersk Drilling’s Maersk Discoverer semisubmersible to drill one exploration well offshore Guyana. The work is expected to begin in the first half of 2022. With this option called, the Maersk Discoverer is fully booked through 2021 and part of 2022.

The Maersk Discoverer is a DSS-21 column-stabilized dynamically positioned semisubmersible, capable of operating in water depths up to 10,000 ft. It is currently operating for CGX offshore Guyana. Following the contract with CGX, the rig will commence a contract with BG International in Trinidad and Tobago, then commence the new CGX contract in direct continuation.

ICD reactivates 16th rig for work in the Permian Basin

Independence Contract Drilling (ICD) recently signed a contract to reactivate its 16th rig, which was to start work in the Permian Basin beginning in mid-October.

After this most recent reactivation, which will be of a 200 series rig, ICD’s future reactivations will focus on the company’s 300 series rigs, said Anthony Gallegos, President and CEO of ICD. The company expects to reactivate at least one additional 300 series rig by year-end.

Mr Gallegos also noted that dayrates are continuing to move upward across ICD’s fleet, with rates on the company’s most recent awards moving over $3,000/day higher than its Q2 2021 reported averages.

Valaris nets new contracts

In October, Valaris announced it had been awarded a 211-day extension to its bareboat charter agreement with ARO Drilling for the VALARIS JU-36 jackup. The extension will put the jackup under contract through March 2022.

In September, Valaris announced two contracts for the VALARIS JU-123 jackup: a 60-day contract with TAQA offshore The Netherlands that is expected to commence in Q4 2021; and a one-well, 72-day contract with Cairn Energy in the UK North Sea that is expected to commence in Q2 2022. The contract with TAQA is for the preparation of a wellbore for the Porthos CO2 transport and storage project. In conjunction with this contract, the rig will be upgraded with a selective catalytic reduction system.

Further, Valaris netted a one-well contract with Carnarvon Petroleum offshore Timor-Leste for the VALARIS JU-107 jackup, expected to commence in Q4 2021.

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