Seadrill’s financials for 2023 showed a net income of US$73M in Q3 2023. Operating revenues and contract revenues stood at US$408M and US$315M respectively
The drilling contractor’s net income for 2023 stood at US$300M with a full-year operating profit of US$329M. This year, however, will be “a year of transition” according to the company’s president and chief executive Simon Johnson, even as Seadrill anticipates a positive outlook for the drilling segment.
At the end of February 2024, Seadrill’s order backlog stood at around US$2.9Bn, including approximately US$1.1Bn in contract additions and adjustments since 27 November 2023.
In E&P news, TotalEnergies and QatarEnergy are looking to expand their presence offshore South Africa. The companies will acquire greater interests in the Orange Basin ahead of exploration activities on the block.
Agreements with other stakeholders in the project will see the French major buy a 33% stake in the licence to drill in offshore block 3B/4B while QatarEnergy will take a 24% stake. The remaining interests will be held by existing licence holders, Africa Oil (17%), Ricocure (19.75%) and Azinam (6.25%). The value of the deal was not disclosed.
Block 3B/4B, located in the prolific Orange Basin, is about 200 km off South Africa’s western coast and extends over some 18,000 km2. Total and QatarEnergy have longstanding agreements to partner on exploration and production in Namibia, Guyana and Kenya.
Serica Energy completed the acquisition of 30% non-operated interests in the P2498 and P2170 licences from Jersey Oil & Gas. The P2498 and P2170 licenses together comprise the Greater Buchan Area (GBA) in the North Sea. The transaction provides Serica with the option of participating in the redevelopment of the Buchan field and other potential projects in the GBA, such as the development of the J2 and Verbier discoveries. The company said it is targeting first production from Buchan in Q4 2026 subject to regulatory nods.
Deadlines for the shallow-water bid round offshore Trinidad and Tobago have been extended from 2 April to 27 May 2024. The Caribbean nation’s Ministry of Energy and Industries is offering 13 offshore blocks along Trinidad’s western, eastern, southern and northern coasts for offer comprising of Block 1(b), Block 2 (ab), Block 2 (d), Block 4 (c), Block Lower Reverse L, Block Modified U (c), Guayaguayare (Offshore) Block, Block 21, Block 22 (a), Block 22 (b), Block NCMA 2, Block NCMA 3 and Block NCMA 4 (a).
Successful bids will be announced four months after the close of bidding. These blocks will be governed by Production Sharing Contracts agreements that will offer operators an initial eight-year-long licence for each block. Upon a commercial discovery, it may be renewed for 25 years. The absence of a commercial discovery will automatically terminate the licence.
Contracts
Seadrill’s West Phoenix semi-submersible is scheduled for a shipyard stay later this year when its current contract with Vår Energi experies in August. The Vår contract began in August 2021 with a day rate of US$359,000.
West Phoenix is then expected to head to a shipyard to complete its special periodic survey and some upgrade works, but any new potential contract is not expected to start before Q2 2025.
In January 2024, Talos Production awarded Seadrill’s West Vela a US$74M contract in the US Gulf of Mexico with an estimated duration of 150 days. The contract is expected to commence following the completion of the rig’s existing firm-term contracts with other independent operators in the region.
Gemsa Petroleum Co awarded Shelf Drilling a two-year contract extension for jack-up Rig 141 in direct continuation of its current term with Gemsa. The rig is working in the Gulf of Suez offshore Egypt and the extension is valued at approximately US$51M, keeping it employed until February 2026. One year of the extension will see the rig work for oil and gas exploration firm Petrogulf Misr.
Omani firm Masirah Oil signed a rig contract with Northern Offshore for a multi-well programme in Yumna field in Oman. Block 50 in the Yumna field will be drilled using the Energy Emerger jack-up.
The multi-well programme will consist of drilling and completing a new infill well and the workover of two existing production wells. The contract commences in mid-March 2024.
Finally, Saipem confirmed its acquisition of the 114-m GustoMSC CJ46 jack-up Sea Lion 7 from China Merchants Industry Holding Co. The rig, which has been contracted to Saudi Aramco since 2019, will be renamed Perro Negro 10.
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