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In extension of its commitment to participating in Phase 2 of the Greensand offshore carbon storage project, Maersk Drilling has entered a framework agreement with the Nini Joint Venture, operated by INEOS Oil & Gas Denmark and Wintershall Dea, covering the supply of drilling rigs for the project offshore Denmark. The agreement confirms Maersk Drilling as the preferred contractor with a right to all drilling rig work involved in Project Greensand on market-rate terms until the end of 2027. The agreement is subject to the project obtaining the necessary funding and final investment decision.
Project Greensand is the most mature carbon capture and storage project inside Danish jurisdiction and targets the development of capacity to permanently store up to 8 million tonnes CO2 per year from 2030, thereby potentially accounting for all the CO2 storage proposed in the Danish Climate Program as presented by the Danish government in 2020. The CO2 will be captured onshore and transported to sea to be injected into discontinued oil and gas reservoirs beneath the Danish North Sea.
In Greensand Phase 1, the four initial consortium partners including Maersk Drilling demonstrated the conceptual feasibility of developing an offshore CO2 storage site at the Nini West field. This assessment was independently certified by the DNV classification society. Following the successful completion of Phase 1, Greensand Phase 2 was announced in August 2021, now involving an expanded consortium of 29 companies, research institutes and universities that represent all parts of the prospective carbon capture and storage value chain.
During Phase 2, the project will enter the pilot phase where the first on-site injection test is expected to commence offshore in the end of 2022, if the necessary aid for the execution of the pilot is granted via Denmark’s Energy Technology Development and Demonstration Program.
The goal is to have the first fully operational injection wells with an annual injection capacity of 0.5-1.5 million tonnes CO2 ready in 2025, pending the final investment decision and regulatory implementation of the agreements outlined in the December 2020 Danish North Sea Agreement. Maersk Drilling will contribute knowhow, manpower and a cash investment to Greensand Phase 2, as well as supplying a drilling rig to assist with the pilot test.
'We’re thrilled to see Greensand move into Phase 2 where we will be headed out to sea to test the concept in practice. We now have confirmation that the Danish North Sea is very well suited for permanent CO2 storage due to its geological structure and reservoir properties, and we believe that a highly interesting carbon management market is in the early stages of development with activities in many offshore regions. There are obviously still technological, financial and regulatory hurdles to overcome, but carbon capture and storage has a clear potential to effectively deliver significant positive impact for the climate, and Maersk Drilling’s competencies and capabilities are a very good match for this,' says Marika Reis, Chief Innovation Officer, Maersk Drilling.
'We’re looking forward to commencing our first-ever carbon storage related operations in Danish waters as part of our commitment to continue contributing to Project Greensand throughout its next phases. This will be an exciting new challenge for our highly skilled crews and will provide an opportunity to utilise our rigs for different purposes while adding new capabilities to our portfolio. The North Sea holds the potential to become an important center for carbon capture and storage,' says Claus Bachmann, Head of North Sea Division, Maersk Drilling.
Source: Maersk
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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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