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Recent activity led by oil and gas supermajors, Shell and TotalEnergies, has confirmed Namibia’s deepwater potential, with the southern African country consolidating its position as a hydrocarbon exploration hotspot.
By looking at Namibia’s recent Venus and Graff discoveries, Rystad Energy – Energy Capital & Power’s knowledge partner – sought to evaluate the country’s petroleum fiscal terms and investment scale in the region in a webinar held on 12 July.
The webinar examined Namibia’s role in southern Africa’s intra-regional gas trade, which is poised to transform Namibia’s $11 billion economy, boost its budget, and create jobs. The session was moderated by Bimbola Kolawole, Business Development Manager for Africa at Rystad Energy, who was joined by Siva Prasad and Pranav Joshi, both Senior Analysts for Upstream Research at Rystad Energy.
“Namibia has become the hot topic in Africa, if not the entire global oil and gas industry,” Prasad stated, adding, “What these back-to-back successes of Venus and Graff have done is that they now have thrust the region into an exploration hotspot in the coming years. We are seeing increased reports of operators coming in in the next few months. What these offshore contracts do in turn is bring subcontracts to local Namibian entities, which can generate a lot of jobs for local Namibians.”
Prasad went on to discuss Namibia’s potential to become an energy hub for the region in the coming years, with Shell having already drilled another wildcat 8km from the Graff discovery, the results of which are expected soon.
Namibia’s oil discoveries have shed light on southern Africa’s frontier basins with specific interest placed on the hydrocarbon potential of the Orange Basin in South African waters. Unlike other countries in the region, South Africa has limited exploration and production legislation, offering the country the potential to learn from Namibia’s success and promote offshore hydrocarbon exploration.
“Both Graff and Venus have been quite significant discoveries and a play-opener for the Orange Basin, which not only is covering Namibia, but is also extending to South Africa,” Joshi said, adding that a Final Investment Decision (FID) for Graff is expected by 2027, with first oil around 2031, while Venus’ FID should be achieved by 2025, with first oil by 2028.
With its favorable fiscal regimes, massive resources, and frontier potential, Namibia boasts a number of positive factors that are expected to attract more investment in the coming years.
Source: AECP
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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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