Rigs report: Seadrill-Aquadrill merger complete; Odfjell lands US$290M rig contract in North Sea

Active jack-up rigs have breached the 400 mark for the first time this year, according to energy analyst Westwood Global Energy Group. While North Sea and Asia Pacific jack-ups remained stagnant or slipped, the Middle East added four new units to settle at 165 active units.

Bucking the trend in the North Sea, Odfjell Drilling has signed two letters of intent (LOIs) with a single unnamed client for the deepwater rig Deepsea Atlantic.

Odfjell said the LOIs are contingent on licence approval, with one of the LOIs also contingent on governmental approval and formalisation of contract. The work will begin consecutively, following completion of the special periodic survey, currently planned H1 2024. 

The LOI’s have a combined value of approximately US$290M excluding integrated services, upgrades, modifications or mobilisation fees, and the contract will keep the semi-submersible employed for a firm duration of 23 months. In addition to the base value, the LOIs include provisions for performance bonuses and fuel incentives. There are four priced one-well options following the firm period and the arrangement also provides for three further optional periods of approximately one-year, each, with the rates for each period to be mutually agreed prior to exercising those options.

BW Energy is close to producing first oil from a well in Gabon. The Oslo-listed company completed drilling operations on first Hibiscus production well (DHIBM-3H) of the Hibiscus/Ruche Phase 1 development campaign in the Dussafu licence, offshore Gabon.

Responsibility for the DHIBM-3H well has been handed over to the production team, which will finalise preparations for production start-up.

BW Energy estimates first oil from the well in early April. Commissioning and start-up of the new gas lift compressor will follow the first oil activities on the FPSO.

Drilling began in January and the well was drilled to a depth of 3,883 m from the BW MaBoMo production facility into a Gamba sandstone reservoir in the Hibiscus field, one of Gabon’s most southern oil fields. 

In addition, a further three conductors have been batch set on slots planned for Ruche and Hibiscus fields. The drilling campaign followed the successful installation of the production facility, risers and pipeline. DHIBM-3H drilling results (drain length and reservoir properties) are in line with expectations.

The Hibiscus and Ruche fields lie just 20 km away from the existing Tortue field where BW Energy is also the majority shareholder. Oil produced at Hibiscus, Ruche and Tortue will be collected and processed at the Adolo FPSO before offloading to oil tankers.

Valaris’ Valaris 115 jack-up is now en route to Brunei to work for Brunei Shell Petroleum. The rig scored a four-year contract worth US$159M and the contract is expected to commence this month. 

The rig recently completed preparations in Singapore and has departed for Brunei to commence operations for Brunei Shell Petroleum.

According to a social media update, the drillship Valaris DS-12 has begun work for Chevron, offshore Angola. Valaris’ most recent fleet update did not disclose the client for the DS-12 but the rig is contracted to work offshore Angola from March to May 2023 for a deal valued at US$26.2M, before heading to Egypt to commence the first of a four-well campaign for BP. That deal will keep the drillship engaged from October through to August 2024 and is worth US$136M. 

Valaris and its wholly owned subsidiary Valaris Finance Co announced an increased security offering at US$700M on financing that will come due in 2030. The offering was scaled up to US$700M from the original offering of US$600M. The offering is expected to close 19 April 2023. The drilling contractor said it intends to use the proceeds from the offering to refinance loans due in 2028.

Valaris also entered into a senior secured five-year credit agreement which provides for commitments permitting borrowing of up to US$375M. The credit agreement will be guaranteed by the same subsidiaries on the loan extension and by Valaris Finance Co and will be secured by the same assets that secure the financing.

Finally, DNV has awarded its Abate-Ready notation to Dubai-based Vahana Marine Solutions for its 2018-built jack-up Vahana Aryan. The Abate notation is designed to assist the owners and operators of offshore units to identify and implement measures which can lead to reductions in greenhouse gas emissions.

DNV said its Abate notation will help offshore operators reach their emissions reduction goals by providing a framework for operational and technical emissions abatement measures. 

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