Daily Archives: October 17, 2011

USA: Atwood Oceanics Wins Contract for Atwood Condor Rig


ATWOOD OCEANICS, INC., announced today that one of its subsidiaries has been awarded a drilling services contract by Hess Corporation for work in the Gulf of Mexico for the Atwood Condor, Atwood’s ultra-deepwater, dynamically positioned Friede & Goldman ExD Millennium semisubmersible drilling unit currently under construction at Jurong Shipyard Pte. Ltd. in Singapore.The contract has a firm duration of 21 months, exclusive of the mobilization period from Singapore to the Gulf of Mexico, and includes two one-year options with pricing subject to mutual agreement.

The Atwood Condor is expected to be delivered from the shipyard in June 2012 and will mobilize to the Gulf of Mexico with expected arrival in September 2012. The commitment for the Atwood Condor is expected to run until June 2014, excluding well in progress. With this contract, Atwood’s total revenue backlog increases by $329 million to approximately $1.9 billion, excluding approximately $32 million in mobilization revenue.

Rob Saltiel, Atwood President and CEO, commented, “We are extremely pleased with the opportunity for the Atwood Condor to work with Hess Corporation in the Gulf of Mexico. We look forward to demonstrating the Condor’s extensive capabilities as we contribute to our client’s success in the region.”

Atwood Oceanics, Inc., is an international offshore drilling contractor engaged in the drilling and completion of exploratory and developmental oil and gas wells. The company currently owns ten mobile offshore drilling units located in the U.S. Gulf of Mexico, South America, the Mediterranean Sea, West Africa, Southeast Asia and Australia, and is constructing an ultra-deepwater semisubmersible, an ultra-deepwater drillship and three high-specification jack ups for deliveries in 2012 and 2013. The company was founded in 1968 and is headquartered in Houston, Texas. Atwood Oceanics, Inc. ordinary shares are traded on the New York Stock Exchange under the symbol “ATW”.


USA: Anadarko, Apache and Noble Energy Hire ENSCO 8505 Rig


Ensco plc announced today that it has entered into a shared drilling contract for ENSCO 8505 with Anadarko Petroleum Corporation, Apache Deepwater LLC and Noble Energy Inc. The initial contract term is for two years or two rotations per operator, whichever is longer, in the U.S. Gulf of Mexico at a day rate of $475,000, plus cost adjustments. The contract adds approximately $350 million to revenue backlog. Two one-year options are at mutually agreed rates.

“We are very pleased that Anadarko and Noble have chosen to contract a second ENSCO 8500 Series® rig for their drilling programs. Apache has been a long-term customer of our jackup fleet and we welcome the opportunity to expand our relationship with them in the ultra-deepwater market.”

Delivery of ENSCO 8505 from the Keppel FELS Limited shipyard in Singapore is scheduled for first quarter 2012 followed by contract commencement in second quarter 2012 once mobilization, sea trials and acceptance testing have been completed.

Chairman, President and Chief Executive Officer Dan Rabun commented, “We are very pleased that Anadarko and Noble have chosen to contract a second ENSCO 8500 Series® rig for their drilling programs. Apache has been a long-term customer of our jackup fleet and we welcome the opportunity to expand our relationship with them in the ultra-deepwater market.

“Our employees who have served these customers in the past are to be commended for delivering exceptional safety and operating performance – giving us the opportunity to earn a new, multi-year contract.”

ENSCO 8505 is the sixth of seven rigs in the ENSCO 8500 Series®. In second quarter 2011, these rigs that operate in South America, Asia and the U.S. Gulf of Mexico had virtually no downtime and achieved 99% utilization. Ensco is ranked #1 in overall customer satisfaction and #1 in deepwater drilling by EnergyPoint, an independent survey firm.

The proprietary design of the ENSCO 8500 Series® rigs was developed with extensive input from customers to address the drilling requirements for virtually every deepwater field around the world. The design includes a 35,000’ nominal rated drilling depth, two million pounds of hoisting capacity, 8,000 tons of variable deck load and an open layout well suited for subsea completion activities. Improved visibility from the open deck configuration also enhances safety.

The uniform design of the ENSCO 8500 Series® streamlines construction, operations, inventory management, training, regulatory compliance, repairs and maintenance. It also provides flexibility for customer specific enhancements; in particular, the 8500 Series may be modified to drill and complete wells in water depths up to 10,000’.

ENSCO 8506, the final rig in the ENSCO 8500 Series®, is currently under construction in Singapore with delivery scheduled for the second half of 2012.


Italy’s Saipem Inks Multiple Offshore Contracts Worth USD 1.5 Billion


In Iraq, Saipem has been awarded by South Oil Company the EPIC contract for the Iraq Crude Oil Export Expansion Project – Phase 2, within the framework of the expansion of the Basra Oil Terminal, off the Al Faw Peninsula in the Arabian Gulf, approximately 550 kilometres south-east of Baghdad.

The contract encompasses the engineering, procurement, fabrication and installation of a Central Metering and Manifold Platform (CMMP), to be installed in a water depth of 28 metres, along with associated facilities.

Fabrication of the CMMP topsides will be carried out at Saipem’s yard in Karimun (Indonesia), while the jacket and piles will be fabricated at the Saipem Taqa Al-Rushid (STAR) yard in Dammam (Saudi Arabia). Offshore activities will be performed in the third and fourth quarter of 2013.

In Nigeria, Saipem has been awarded the OFON2 – D030 contract by Total E&P Nigeria Limited, for new offshore facilities in the Ofon field, about 50 kilometres off the southern coast of Nigeria.

Saipem will carry out the engineering, procurement, fabrication and installation of the OFP2 Jacket (comprising the 1,970 ton jacket structures and the 4,500 ton piles), as well as the transportation and installation of the complete new OFQ living quarter offshore platform.

The fabrication of the jacket will take place in the Saipem Rumuolumeni Yard in Port Harcourt, Nigeria.

Offshore activities will be performed mainly by Saipem 3000 vessel, in different phases during 2013.

Furthermore, Saipem has been awarded contracts in the Norwegian and British sectors of the North Sea and in the Gulf of Mexico, mainly based on deployment of the Saipem 7000 vessel, for the transportation and installation of platforms and marine facilities, along with the decommissioning of existing offshore structures.

Offshore activities will be performed in several phases commencing in the fourth quarter of 2011 through to late 2014.

Finally, Saipem has agreed to increase the scopes of its work on a number of existing E&C Offshore contracts.

Saipem is organised into two Business Units: Engineering & Construction and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and execution of large-scale offshore and onshore projects, and technological competences such as gas monetisation and heavy oil exploitation.


Bowleven Announces Drilling Success, Offshore Cameroon


Bowleven, the West Africa focused oil and gas exploration group traded on AIM, on Friday (October 14) announced the discovery of oil at the Sapele-3 exploration well drilling in the Douala Basin, offshore Cameroon.

Sapele-3 drilling update

The Sapele-3 well is located circa 16 kilometers North West of Sapele-1 and circa thirteen kilometers North West of the D-lr wells. The well is drilling in water depths of approximately 30 meters.

The well was initially designed to target the shallower Miocene play including the reservoir interval previously encountered at Dl-r. Due to optimised well design it has also been possible to deepen the well into what is the Deep Omicron  equivalent interval encountered with previous Sapele wells.

Bowleven, as operator, provides updates for the reservoir intervals encountered at Sapele-3 below:

Deep Omicron interval (oil)

The well has encountered 11 meters of independently log evaluated hydrocarbon pay in high quality sandstone reservoirs within the Deep Omicron stratigraphic interval intersected by previous Sapele wells. In addition, a further 24 meters of  net sand was encountered, of which up to 11 meters is currently interpreted as having either a high residual hydrocarbon or a hydrocarbon bearing response from logs. Further evaluation to determine whether this is pay or not is pending.

Wireline logs indicate that the majority of reservoir has been encountered within two distinct packages within the upper part of the Deep Omicron interval that can be correlated to the earlier Sapele discovery wells. The logs also indicate high  net to gross ratios through these packages.

As the well is only two thirds of the way through the Deep Omicron interval and has encountered excellent quality oil bearing reservoir at current total depth (TD), the intention is to recommence drilling to the base of Deep Omicron. The  presence of light oil at current TD has been confirmed by sampling. Testing plans will be assessed on reaching final TD. The confirmed presence of oil in the Deep Omicron interval at Sapele-3, 16 kilometers from the original Deep Omicron discovery at Sapele-1, extends the currently mapped Deep Omicron fairway significantly Northwards into MLHP-6. Consequently a significant increase in current Deep Omicron in-place volumetrics is anticipated.

Miocene interval

At the shallower Miocene (Dl-r) equivalent interval target, a 7 meter high quality sandstone was encountered with a I meter gas-condensate column. The extent and size of the discovery is worthv of further evaluation.

Kevin Hart, Chief Executive of Bowleven plc commented:

“We are excited with results so far at Sapele-3. The Deep Omicron interval continues to deliver and the confirmed presence of oil and good quality reservoir at this location further emphasises the significance of this play within the Douala  Basin. All four Sapele wells drilled have now encountered oil within the Deep Omicron interval, thus reinforcing the geological model and highlighting the overall development and exploration potential of the fairway. This well has also now  shown that the Deep Omicron interval extends considerably beyond the currently mapped area which has significant implications in terms of both volumetrics and prospectivity potential on both block MLHP-5 and MLHP-6. In addition, the gas condensate discovery at the Dl-r interval is promising and warrants further evaluation.

The results at Sapele-3 represent another step towards our overarching strategy of converting resources to reserves whilst highlighting the extensive exploration potential in the basin. We look forward with eager anticipation to the further drilling planned at Sapele-3.”


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