Drilling & Completion News

GOM’s Kaskida gets greenlight from BP, with production startup expected in 2029

BP has taken a final investment decision on the Kaskida project in the US Gulf of Mexico. It will be BP’s sixth hub in the Gulf of Mexico, featuring a new floating production platform with the capacity to produce 80,000 barrels of crude oil per day from six wells in the first phase. Production is expected to start in 2029.  

“Developing Kaskida will unlock the potential of the Paleogene in the Gulf of Mexico for BP, building on our decades of experience in the region,” said Gordon Birrell, Executive VP of Production and Operations.

“Technology has and will continue to play a pivotal role in propelling Kaskida from discovery to production. Together with the other resources we have in the Paleogene, we expect it to prove to be a world-class development. Today is a critical step in realizing its potential.“

Owned 100% by BP, the Kaskida field has discovered recoverable resources currently estimated at around 275 million barrels of oil equivalent from the initial phase. Additional wells could be drilled in future phases, subject to further evaluation.

Enabled by 20K advances

Located in the Keathley Canyon area about 250 miles southwest off the coast of New Orleans, the Kaskida project unlocks the potential future development of 10 billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas. 

BP plans to leverage existing platform and subsea equipment designs that can be replicated in future projects to drive cost efficiencies across Kaskida’s construction, commissioning and operations. 

“By employing an industry-led design solution, Kaskida will be simpler to construct and simpler to operate, enhancing safety and delivering greater value for BP,” said Andy Krieger, Senior VP, Gulf of Mexico and Canada.  

Kaskida is in a prime location, with a stable fiscal regime and access to market. It will also be BP’s first development in the Gulf of Mexico to produce from reservoirs that will require well equipment with a pressure rating of up to 20,000 psi (20K). Advancements in 20K drilling technology, coupled with updated seismic imaging, are enabling BP to safely develop Kaskida and progress plans to develop other fields such as Tiber, which is expected to advance to a final investment decision next year.

Click here to read more about BP’s ambitions for the Paleogene.

Borr jackups awarded work in Brazil, Asia, Africa

Borr Drilling announced new contract commitments for three of its jackup rigs covering 1,779 days and $332 million in contract revenue, including mobilization and demobilization compensation. 

The Arabia I, which had its work scope suspended earlier this year in Saudi Arabia, has secured a long-term contract in Brazil. The contract period is four years firm plus a four-year unpriced option. This contract is expected to commence in Q1 2025 for Petrobras. 

In Southeast Asia, the Gunnlod has received a binding Letter of Award from an operator in Malaysia. The award covers a firm scope of seven wells, with an anticipated duration of 210 days, and is expected to commence in November 2024.

In Africa, the Norve secured a 109-day contract extension with BW Energy in Gabon. This extension will keep the Norve contracted until February 2025, when it will commence its subsequent contract with Marathon Oil in Equatorial Guinea.

Additionally, the company had previously announced the award of 180 days firm plus 180 days option commitment in Congo for Eni. The Gerd jackup will execute this program, which is expected to commence in October 2024.

First oil achieved on Winterfell in Green Canyon area 

Kosmos Energy announced the successful startup of oil production at the Winterfell development in the Green Canyon area of the US Gulf of Mexico. 

Winterfell, in which Kosmos holds 25.04% working interest, is a phased development with the initial two production wells of the first phase now online and ramping up production.  A third well is being drilled and expected to be online by the end of Q3 2024. The three initial wells are expected to deliver gross production of approximately 20,000 barrels of oil equivalent per day (boed).

Winterfell is a Miocene-aged field discovered in 2021 in a water depth of approximately 5,400 ft (1,600 m). The field has been developed via a 13-mile subsea tieback to the host platform. Following the successful drilling and completion of the first two wells and subsea hookup in April 2024, delays in subsequent work resulted in first oil slightly later than anticipated.

The first phase of the development, with five wells in total, is expected to deliver around 100 million barrels of oil equivalent with upside from subsequent phases. The Winterfell unit consists of Green Canyon blocks 899, 900, 943, 944, 987 and 988 with follow-on opportunities in adjacent blocks where Kosmos also has an interest.

The other partners in the Winterfell unit are Beacon Offshore Energy (operator), Westlawn Americas Offshore, Red Willow, Alta Mar Energy and CSL Exploration.

Block 9 offshore Mexico yields new discovery for Eni

Eni announced a new discovery on the Yopaat-1 EXP exploration well in Block 9, approximately 63 km off the coast in the mid-deep water of the Cuenca Salina in the Sureste Basin offshore Mexico. The preliminary estimates indicate a discovered potential of approximately 300 million to 400 million barrels of oil equivalent (boe).

The well was drilled in a water depth of 525 m and reached a total depth of 2,931 m, finding 200-m net pay of hydrocarbon-bearing sands in the Pliocene and Miocene sequences.

The Block 9 joint venture consists of Eni as operator with a 50% participating interest, and Repsol with the remaining 50%.

This successful result, alongside the discoveries in Eni-operated Blocks 7 and 10, confirms the value of Eni’s asset portfolio in the Sureste Basin. The overall estimate of resources in place currently exceeds 1.3 billion boe, which allows Eni to advance with the studies toward a potential future “hub” development, including the discoveries and other prospects present in the area, in synergy with the infrastructures located nearby.

Eni is the main foreign operator in the country and holds rights in eight exploration and production blocks.

Ocean BlackRhino awarded new contract in US Gulf

Diamond Offshore Drilling has entered into a contract with BOE Exploration & Production for the Ocean BlackRhino for work in the US Gulf of Mexico. The Ocean BlackRhino was awarded a contract with a minimum duration of 180 days for a total value of approximately $89 million, excluding mobilization and any additional services. The contract also includes two additional option periods. Work under the new contract is expected to commence late in Q1 or early Q2 of 2025.

Bernie Wolford Jr., President and CEO, commented, “This contract reflects the BlackRhino’s exceptional track record and is the third in a series of follow-on contracts for the rig after its current contract.”

Transocean adds more than $650 million to backlog

Transocean’s fleet status report in July included the following updates:

• Deepwater Atlas – Awarded a four-well contract in the US Gulf of Mexico at $505,000, with contingencies to perform three completions at the same dayrate.
• Deepwater Atlas – Awarded a two-well contract for drilling operations in the US Gulf of Mexico at a dayrate of $580,000, with contingencies to perform two 20K completions at a dayrate of $650,000.
• Deepwater Asgard – Awarded a 365-day contract extension in the US Gulf of Mexico at a dayrate of $515,000.
• Deepwater Invictus – Awarded a 40-day contract extension in the US Gulf of Mexico.
• Transocean Norge – Awarded a three-well contract extension in Norway at a current dayrate of $517,000.
• Transocean Spitsbergen – Awarded a three-well contract extension in Norway at a current dayrate of $483,000.
• Transocean Endurance – Customer exercised a one-well option in Australia at a dayrate of $390,000.
• Deepwater Mykonos – Customer exercised a 279-day option in Brazil at a current dayrate of $366,000.

The aggregate incremental backlog associated with these fixtures is approximately $656 million. As of 24 July 2024, the company’s total backlog was approximately $8.8 billion.

TotalEnergies extends contract with Northern Ocean’s Deepsea Mira 

Northern Ocean announced an extension of its contract with a subsidiary of TotalEnergies for continued work in Africa using the Deepsea Mira semisubmersible. The firm term of the contract is extended from October 2024 for one well and provides one additional well option. The extension from October provides a firm revenue backlog of approximately $24.3 million to $34.2 million, with the option to extend for an additional well that could add a further $26.9 million to $36.9 million.

2nd rig from Abraj Energy Services begins operations on Wafra field in Kuwait

Abraj Energy Services announced the successful commencement of operations for its second drilling rig on Kuwait’s Wafra oil field ahead of schedule. This follows the final acceptance from multiple inspecting authorities and marks a significant step forward in Abraj’s expansion into the Kuwaiti market.

The new deployment is part of a comprehensive contract with Kuwait Gulf Oil Company and Saudi Chevron and follows the mobilization of the first rig in March 2024.

The new rig, a 1,500-hp fast-moving rig, is equipped with AI drilling technology and an automated rig package.

LLOG adds 41 new blocks to deepwater GOM portfolio

LLOG Exploration announced that it acquired 41 blocks of acreage encompassing approximately 236,000 acres in the East Breaks and Alaminos Canyon area of the deepwater Gulf of Mexico. LLOG now owns a 100% working interest in and is the operator of all 41 blocks. The acreage sits north of LLOG’s Blacktip and Blacktip North deepwater discoveries in Alaminos Canyon blocks 335, 336, 337, 380, 381 and 424. LLOG drilled a successful sidetrack on the Blacktip discovery in Q3 2023 and is planning to drill an appraisal well at Blacktip North in Q3 this year.