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In a move that bodes well for efforts to harness Oman’s untapped offshore hydrocarbon potential, the local subsidiary of global energy major Eni has commenced drilling of what is billed as the first deep-water well in the Sultanate’s history.
A drillship chartered by Eni Oman commenced drilling activities in Block 52, a vast deepwater concession that extends off the Sultanate’s southern and south-eastern seaboard, a high-level executive said.
“Yes, I can confirm that drilling operations started on February 10 of this year,†said Salvatore Giammetti, Managing Director —Eni Oman. “This is the first offshore deepwater well in the history of Oman’’.
In remarks to journalists on the sidelines of a press briefing on the upcoming Oman Petroleum and Energy Show 2020 (OPES), Giammetti said the maiden well is a testament to Eni’s commitment to the Sultanate’s hydrocarbon sector.
“In the last two years, we have signed more than 16 (Oil & Gas) agreements in the Middle East. But Block 52 has been the first, and as a matter of fact, Oman was the first country in the region with which we have signed an agreement (following Eni’s return to this region after a long gap).â€
Eni’s decision to drill its first deepwater offshore well — “against a very tight schedule†— was also aimed at demonstrating the energy major’s “fast-track approach†in the delivery of any exploration project, said Giammetti.
The Pacifica Bora, a drillship owned and operated by Pacific Drilling, is currently drilling in a water depth of around 880 metres in Block 52, the Managing Director said.
Eni Oman is the operator of Block 52 — a massive 90,790 sq kilometre concession — with a 55 per cent stake. Qatar Petroleum holds a 30 per cent interest, while Oman Oil Company Exploration & Production (OOCEP) — the upstream investment arm of OQ (formerly Oman Oil & Orpic Group) — owns the balance 15 per cent.
Although largely unexplored, Block 52 is believed to be prospective for hydrocarbon resources based on evidence of the presence of petroleum systems in the block. Water depths range from 10 metres near the coast to 3,000 metres at the deep end, underscoring the challenges for Eni in the exploration and production, if any, of subsea resources.
Eni also has investments in two other blocks in the Sultanate.
Eni and BP each hold a 50 per cent interest in Block 77, covering a total area of 2,734 sq km in central Oman.
Eni is the operator during the exploration phase of an EPSA pact signed with the Omani government.
Eni (as operator with 90 per cent interest) and OOCEP (10 per cent) have also entered into an Exploration and Production Sharing Agreement (EPSA) for Block 47, an onshore block in Al Dakhiliyah Governorate covering an area of 8,524 sq km.
Source: Oman Daily Observer
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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