Esgian Week 9 Report: Dolphin, Diamond and Seadrill Updates
Esgian reports rig-related updates from Dolphin Drilling, Diamond Offshore, and Seadrill in its Week 9 Rig Analytics Market Roundup.
Report Outline:
Contracts
Despite Tullow Oil’s recent announcement that it would take a break from drilling offshore Ghana, Noble Corp. has stated that there has been no contract termination announcement and that its 12,000-ft drillship Noble Venturer is currently still contracted to Tullow into March 2025.
Masirah Oil Ltd has signed a rig contract with Northern Offshore for a multi-well program in Yumna field in Oman.
Drilling Activity and Discoveries
Oil major bp has started drilling its first well on the Cypre gas development offshore Trinidad & Tobago, using the 350-ft jackup Valaris 118 (aka Joe Douglas).
QatarEnergy is proceeding with a new LNG expansion project on the back of the positive results of appraisal drilling and testing at the North Field, located off the northeast shore of the Qatar peninsula.
Due to a revised well schedule, the 12,000-ft drillship West Vela will continue working for Beacon Offshore in the US GOM under the management of Diamond Offshore into mid-August 2024. The rig will then transition to its owner Seadrill’s management.
Wintershall Dea's appraisal well 6507/4-4 S has resulted in a minor increase in the resource estimate for a gas/condensate discovery near the Dvalin field in the Norwegian Sea.
The Norwegian Ocean Industry Authority (Havtil) has given Aker BP consent for exploration drilling of three wells in blocks 7324/6 and 7324/8 in the Barents Sea with the 10,000-ft semisubmersible Scarabeo 8. All three wells are located in production licence 1170, which is operated by Aker BP in partnership with Equinor, Petoro, and INPEX Idemitsu Norge.
Though Harbor Energy recently exercised a one-well option with an estimated duration of two months for drillship West Capella offshore Indonesia, rig owner Seadrill has stated that the rig is now expected to conclude operations in August 2024 due to a revised well schedule.
Rig Sales
Saipem confirmed that it has acquired the 375-ft GustoMSC CJ46 jackup Sea Lion 7 from China Merchants Industry Holding Company. The rig is to be renamed Perro Negro 10.
Mobilisation/Rig Moves
Diamond Offshore expects its 10,000-ft semisubmersible Ocean GreatWhite to be out of service for an estimated 90 to 100 days then return to work for bp west of the Shetland Islands in late April or early May 2024. The rig reported an equipment incident on 1 February 2024.
Valaris 12,000-ft drillship Valaris DS-13 has arrived at Las Palmas in the Canary Islands, where the rig will be stacked until it secures a contract. The 12,000-ft sister rig Valaris DS-14 is expected to arrive in the Canary Islands around mid-March 2024.
The Shelf Drilling-owned 300-ft jackup Trident 16 has completed its contract with Petrobel in the Red Sea off Egypt.
The Dynamic Drilling-managed jackup Divine Driller has left the ASRY Shipyard in Bahrain and is now on its way to India.
Other News
Offshore drilling contractor Dolphin Drilling reported a net profit for the last quarter of 2023, compared to a loss in the prior quarter, with a total revenue backlog of over $1 billion.
Dolphin Drilling has revealed its plans for the reactivation and special periodic survey (SPS) of the warm stacked 1,500-ft moored semisub, Borgland Dolphin, ahead of a contract in the UK in 2025.
Serica Energy has completed the acquisition of 30% non-operated interests in the P2498 and P2170 licences (together the Greater Buchan Area), located in the UK North Sea, from Jersey Oil & Gas (JOG).
Dolphin Drilling is still exploring what it would take to bring the recently acquired 5,500-ft moored semisub Transocean Leader back to life, but will not do anything on speculation.
Norwegian authorities have granted consent to Aker BP to start production on the Hanz accumulation on the Ivar Aasen field in the North Sea.
Malaysian drilling contractor Velesto on Tuesday posted a Q4 2023 net profit of 66,7 million Malaysian ringgit (cca $14 million) on cca 359 million ringgit revenue (cca $75,4 million), an increase compared to the Q4 2022 numbers.
VAALCO Energy is in discussions with the owner of Svenska Petroleum Exploration AB regarding a possible debt-free corporate transaction to acquire Svenska. Svenska’s primary asset is a 27.38% interest in Block CI-40 offshore Cote d’Ivoire.
Offshore drilling contractor Diamond Offshore reported an adjusted net loss of $145.7 million for the fourth quarter of 2023, compared to an adjusted net loss of $138.8 million in the prior quarter.
Diamond Offshore is planning to carry out blowout preventer (BOP) recertification on its 10,000-ft semisub Ocean Endeavor in late 2024.
Diamond Offshore has provided an estimate of financial implications resulting from a recent incident on its 10,000-ft semisubmersible Ocean GreatWhite. The incident in which the lower marine riser package (LMRP) had been disconnected from the BOP on the well happened while the rig was working for bp in the West of Shetland area at the beginning of February 2024. Subsequently, the LMRP and the deployed riser string unintentionally separated from the rig and dropped to the seabed. The rig is currently in the process of recovering the LMRP to the surface.
Seadrill reported net income of $73 million for the fourth quarter of 2024, with operating revenues of $408 million, contract revenues of $315 million and adjusted EBITDA of $100 million for the same quarter.
Viaro Energy now holds 100% of licence P.2593 located in the West of Shetland through its wholly-owned subsidiary, RockRose Energy, and is now the licence administrator.
Seadrill’s 10,000-ft 6th Gen semisub West Phoenix is scheduled for a shipyard stay later this year, but the types of upgrades it will receive will depend on the destination market of a potential new contract.
Executives at Seadrill said that they have started early conversations with Petrobras and other operators about future work for drillships that are currently working in Brazil under legacy contracts.
Trinidad and Tobago’s Ministry of Energy and Energy Industries has moved the deadline for submission of bids in its Shallow Water Competitive Bid Round 2023 from 2 April 2025 to 27 May 2024.
Seadrill 12,000-ft semisubmersible Sevan Louisiana is undergoing its 10-year special periodic survey in the US GOM.