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The Offshore Frontier

Transocean announces agreement to acquire Ocean Rig

Transocean and Ocean Rig announced today that they have entered into a definitive merger agreement that Transocean will acquire Ocean Rig in a cash and stock transaction valued at approximately $2.7 billion, inclusive of Ocean Rig’s net debt. The transaction consideration is comprised of 1.6128 newly issued shares of Transocean plus $12.75 in cash for each share of Ocean Rig’s common stock, for a total implied value of $32.28 per Ocean Rig share, based on the closing price on 31 August 2018. This represents a 20.4% premium to Ocean Rig’s 10 day volume weighted average share price. The transaction has been unanimously approved by the board of directors of each company. Transocean intends to fund the cash portion of the transaction consideration through a combination ...

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ExxonMobil adds ninth discovery offshore Guyana

ExxonMobil has made its ninth discovery offshore Guyana at the Hammerhead-1 well, marking its fifth discovery on the Stabroek Block in the past year and proving a new play concept for potential development. Hammerhead-1 encountered approximately 197 ft of high-quality, oil-bearing sandstone reservoir. The well was safely drilled to 13,862 ft depth in 3,773 ft of water. The Stena Carron drillship began drilling on 27 July 2018. “The Hammerhead-1 discovery reinforces the potential of the Guyana basin, where ExxonMobil is already maximizing value for all stakeholders through rapid phased developments and accelerated exploration plans,” Steve Greenlee, president of ExxonMobil Exploration Company, said. “Development options for Hammerhead will take into account ongoing evaluation of reservoir data, including a well test.” Hammerhead-1 is ...

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Maersk Drilling signs two-year multi-service jackup contract with Aker BP

Maersk Drilling has signed a new two-year contract with Aker BP. Maersk Reacher will be deployed as an accommodation rig, with the option of repurposing the rig for plugging and abandonment for the final phase of the contract. The rig is expected to commence operations in its new role by October 2018. The flexible contract is agreed upon in continuation of the alliance between Maersk Drilling and Aker BP where the parties have committed to align incentives and co-create optimal solutions. “Like Aker BP, we see great value in working closely together, and the benefit is obvious in this contract where adaptability to the customer’s needs is key for Aker BP to be able to make a long-term commitment,” Morten Kelstrup, CCIO ...

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Increased value creation, more resources and greater ripple effects from Johan Sverdrup

Today, Equinor and the Johan Sverdrup partnership of Lundin Norway, Petoro, Aker BP and Total, are submitting the development plan for the second phase of the project to the Norwegian Ministry of Petroleum and Energy. With an increased resource estimate and lower investment costs, the full field development of Johan Sverdrup will contribute to even greater value creation. At the same time, the ripple effects from the project will be larger than previously estimated. Low CO2 emissions make Johan Sverdrup one of the world’s most carbon-efficient fields. “The Johan Sverdrup field is the largest field development on the Norwegian shelf since the 1980s. At plateau, the field will produce up to 660,000 bbl/day, with a break-even price of less than ...

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Siccar Point Energy confirms Cambo well test success

On 23 August, Siccar Point Energy successfully concluded well testing operations on the 204/10a-5 appraisal well in the Cambo field, northwest of Shetland. A vertical pilot hole was initially drilled, confirming over 100 ft of oil column and a higher than anticipated net pay of 58 ft. Extensive logging and coring were conducted confirming a high-quality multi-Darcy reservoir with 23 API oil and better than anticipated petrophysical properties. A 1612-ft horizontal section was then drilled to conduct an extended well test. Following initial well clean-up operations, the well was successfully tested on natural flow for 10 days. A full evaluation of the test results will take place over the coming weeks as further pressure build-up data are obtained remotely after the rig’s ...

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‘Vanished’ deepwater poses serious oil shortage threat

By Mike Killalea, Editor & Publisher “The offshore drilling market isn’t depressed. It’s vanished,” the longtime drilling contractor sourly observed, perhaps mentally scanning the expanse of nearly rigless seascape that is the Gulf of Mexico. In early August, only 17 rigs were running offshore in the GOM, according to the Baker Hughes Rig Count. By contrast, even the worst previous downturn, in 1992, saw at its mid-year nadir 27 rigs working offshore in the GOM. During the Golden Age of Drilling, in December 1981, 25 MODUs were drilling offshore rig-hating California, and 175 in the Gulf. Deep dive into deepwater econ But the long dry spell might be easing. A recent deep dive into deepwater economics by Paul Cheng, CFA at ...

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Maersk Drilling becoming stand-alone company

A.P. Moller – Maersk has decided to pursue a demerger via a separate listing of Maersk Drilling on Nasdaq Copenhagen in 2019. Having evaluated the different options available for Maersk Drilling, A.P. Moller – Maersk has concluded that listing Maersk Drilling as a standalone company presents the most optimal prospects for its shareholders. Spinning off the drilling arm will offer investors offering them the opportunity to participate in the value creation of an industry leading pure play offshore drilling company with long-term development prospects, according to a statement from the company. “A separate listing will ensure that Maersk Drilling can continue to uphold and develop its unique position to the benefit of both its long-term blue chip customer base and ...

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BP, partners develop guidelines, scenarios for activation of diverter, EDS in deepwater operations

Joint effort with Seadrill, Maersk Training grew out of ‘complexity’ drills created to improve crew response to well control complications By Alex Parmenter, BP; Matias Machum, Seadrill; and Evelyn Baldwin, Maersk Training In deepwater drilling operations, the initial response to any well control event is critical because prompt and informed decision making is required to minimize escalation. Experience has shown that, in the face of an escalating well control scenario that requires the activation of the diverter and/or the emergency disconnect sequence (EDS), there is a risk that critical decisions may be delayed. Recognizing that rig crews need to respond quickly and that decisions about how to proceed need to be clear before an incident occurs, BP, Seadrill and Maersk Training ...

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Carnarvon announces assessment of Dorado resources

Carnarvon Petroleum has completed its assessment of the hydrocarbon volumes within the Dorado structure in WA-437-P. Gross Contingent Resource 1C 2C 3C Oil (million barrels) 82 171 320 Condensate (million barrels) 6 16 36 Total liquids (million barrels) 88 186 356 Gas (billion cubic feet) 229 552 1,197 Barrels of oil equivalent (million barrels) 128 283 566   Carnarvon’s Managing Director and CEO, Adrian Cook said, “The 171 million barrels of oil discovered in Dorado is one of the largest oil resources ever found on the North West Shelf. Oil fields of this significant scale are not often found, with the last large field discovery on the North West Shelf being around 30 years ago. It is common for additional resources to be ...

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Premier and Dana Petroleum sanction Tolmount development

Premier announced that the development of its Tolmount Main gas field was sanctioned by the joint venture and infrastructure partners. The Premier-operated Tolmount Main gas field, located in the Southern North Sea, is expected to produce around 500 Bcf of gas, 96 mmboe, with peak production of up to 300 mmscfd, 58 kboepd. The project entails a minimal facilities platform exporting gas to shore via a new gas pipeline. The EPCIC, Engineering, Procurement, Construction, Installation and Commissioning, contract for the platform has been awarded to Rosetti Marino. Centrica’s Easington terminal was selected as the host facility, and Saipem as the pipeline EPCI contractor. Selection of the rig contractor for the four development wells is expected soon. Premier’s share of the capex required ...

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