Rigs report: strike impacts 8% of Norwegian oil production

Jack-up, floater drilling up

While the labour unrest is impacting oil production out of Norway, overall global offshore drilling was up in week 41 2020, according to RigLogix data from Westwood Global Energy Group. Globally, the number of offshore jack-up rigs rose two week-on-week to 326, the highest level in five weeks, strengthened by activity in the Middle East. Floater activity rose to 118 units contracted globally, up one week-on-week, with positive activity in the North Sea.

In the Norwegian North Sea, Dolphin Drilling’s offshore drilling unit Borgland Dolphin is now at the Kvina Shipyard following the conclusion of drilling the wildcat well 6204/11-3 for Wellesley Petroleum AS, operator of production licence 829. The well was drilled about 75 km north of the Gjøa field in the North Sea, according to the Norwegian Petroleum Directorate (NPD).

Wellsley Petroleum had hoped to prove petroleum in reservoir rocks in the Åsgard Formation, but no reservoir rocks were encountered.

Well 6204/11-3 was drilled in water of 211 m to a vertical depth of 1,290 m below sea level and was terminated in basement rock. The well has now been permanently plugged and abandoned, according to NPD.

Meanwhile, authorities have given the green light to operator Aker BP to start production from Phase 1 of the development of the Aerfugl gas and condensate field in the Norwegian Sea.

Production is also taking place from an earlier test production well in Phase 1 and an accelerated well in Phase 2, which was drilled from an available well slot on one of Skarv’s subsea templates.

All production on Aerfugl will be tied in to Skarv, situated 210 km west of Sandnessjøen in Nordland county. Aker BP and the other licensees plan to complete the Aerfugl development with the remaining two wells in Phase two.

Export of gas from Skarv will be postponed to obtain capacity for the Aerfugl gas on Skarv FPSO. This will contribute to improved oil recovery on Skarv.

In its latest fleet status report in September, drilling contractor Noble said it had secured a contract extension from Equinor for the jackup rig Noble Lloyd Noble to drill in the UK North Sea to late November, with a two-month option.

In the same report, Noble also said that Noble Lloyd Noble was secured for a three-well contract by Equinor for the NCS from June 2021 to January 2022, with 12 one-well options. The total value of the day rates for the fixed part of the contract is estimated at US$51M. Additional costs cover integrated services such as managed pressure drilling, treatment of cuttings and wastewater as well as running casing and tubing, rig modifications, mobilisation and demobilisation.