Rigs report: Aramco’s suspended expansion hits offshore stocks; autonomous drilling hits new record offshore Brazil

Contracts

Seadrill announced multiple contract awards totalling almost US$98M for its drillships. 

Talos Production Inc awarded West Vela a contract with an estimated duration of 150 days in the US Gulf of Mexico. The contract is expected to commence in Q3 2024 and represents a total contract value of approximately US$74M, excluding managed pressure drilling services.

West Capella’s operator exercised a one-well option with the existing third-party manager, extending its operations by approximately two months in direct continuation of the rig’s current programme, valued at US$24M.

Seadrill added it has been advised by the current manager of West Auriga that the rig will be released in February 2024 due to changes in their client’s drilling sequence. Seadrill will resume management of the rig in Q1 2024 and accelerate preparation for its previously announced contract in Brazil beginning in the second half of the year.

In Turkmenistan, Dragon Oil and and Bluewhale Offshore have signed a three-year contract extension to keep Caspian Driller working for Dragon Oil offshore Turkmenistan. The extension is effective immediately following the conclusion of the rig’s current contract in Q1 2024. 

Borr Drilling’s jack-up Gunnold completed work with SapuraOMV after drilling six development wells at the Jerun field offshore Sarawak, Malaysia. Gunnlod is expected to remain in Malaysia for an upcoming contract with an undisclosed operator which begins in February and runs until May 2024.

And Santos’ Barossa development has resumed operations. After more than a year on standby in Darwin, Australia, Valaris’ semi-sub Valaris MS-1 has resumed drilling. 

The project has faced significant hurdles including a legal challenge that saw Santos’ environmental plan suspended in September 2022. Last month, Australian regulator National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) accepted a new Environment Plan, clearing the path for drilling approval.

The Federal Court of Australia has ruled in favour of Santos in a case pertaining to pipelay activities. The Court has dimissed the application and discharged the injunction that prevented pipelay activities south of the kilometre 86 point along the Barossa Gas Export Pipeline.

Valaris MS-1 arrived at the Barossa field in mid-January from its standby location southeast of Cape Fourcroy, Bathurst Island, in the Beagle Gulf.

Santos confirmed that drilling has recommenced 13 January 2024. Santos managing director and chief executive Kevin Gallagher said pipelaying and drilling activities are “now fully under way.” Despite the delay, the company still expects first gas from Barossa in 2025.

Riviera Maritime Media’s Offshore Support Journal Conference, Awards and Exhibition 2024 will be held in London, 7-8 February 2024, click here to purchase tickets and attend this industry-leading event