Maersk Drilling and Seapulse enter alliance to execute global exploration drilling program

Maersk Drilling and Seapulse have signed a master alliance agreement (MAA) under which Maersk Drilling will provide fully integrated services, including provision of drilling rigs, related drilling services, well services, and other goods and services, for a global offshore oil & gas exploration drilling program of 12 wells. The program is expected to commence in the middle of 2019 with an expected duration of 490 days.

The program spans shallow water and deepwater wells in several regions requiring a combination of jackups, semi-submersibles, and drillships. The specific rigs to be deployed during the course of the program will be determined on basis of rig suitability and availability.

The fully integrated services will be provided on the basis of market rates with an incentive payment scheme to drive performance and provide potential upside for the parties involved in the well program. Maersk Drilling expects to subcontract the majority of the well services.

“This alliance is a key example of a fully-integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain,” Jørn Madsen, CEO of Maersk Drilling, said. “This allows Maersk Drilling to leverage our proven track record of delivering wells safely and efficiently – thereby mitigating operator cost risk whilst sharing in the commercial upside of the program. The ambitious global drilling program will utilize Maersk Drilling’s young and versatile fleet of drilling rigs to explore an extensive prospect portfolio.”

“The Seapulse business model has the promise to be transformational for the oil and gas industry, by optimizing the risks and rewards associated with exploration drilling,” Scott Aitken, CEO and co-founder of Seapulse, said. “Our strategy leverages Maersk Drilling’s technological and operational expertise, whilst giving access to a cherry-picked global prospect portfolio, creating a sustainable approach to offshore exploration. Seapulse’s strong financial backing gives us the critical advantage of being able to drill and test a statistically de-risked exploration portfolio normally only associated with super-major oil companies.”

The planning of the global exploration drilling program will be finalized by Seapulse in conjunction with program investors.