| Work Detail |
Offshore drilling contractor Northern Ocean (NOL) has secured a new short-term job off the coast of Ghana for a semi-submersible rig, which recently finished its long-term assignment with the UK-headquartered Shell and has work lined up for the fourth quarter of 2024 offshore Namibia with an undisclosed operator.
Northern Ocean’s Deepsea Bollsta rig, managed by Odfjell Drilling, worked within the Orange Basin in Namibia for 18 months, after arriving in the African country from Norway. Shell elected to terminate the rig’s drilling contract in May 2024 and compensated the rig owner with a standby rate until June 10. Afterward, the rig moved to Walvis Bay for its special periodical survey (SPS).
At the end of June 2024, Northern Ocean announced a one-well contract award for the Deepsea Bollsta rig in Namibia’s waters with a subsidiary of an undisclosed company said to be a major operator. The assignment, estimated to take 63 days, is slated to start in the fourth quarter of 2024.
Before the semi-submersible begins its next drilling job in Namibia, the rig owner has landed another short-time, one-well deal in Africa, enabling the semi-sub to undertake appraisal activities for Springfield E&P at the Afina-1x well on the WCTP-2 deep offshore block in Ghana.
“In partnership with GNPC and GNPC Explorco, this strategic initiative underscores Springfield’s commitment to advancing Ghana’s oil production by aiming to finalize the unitization of the Afina-Sankofa fields to ultimately bring significant value to the government of Ghana and all stakeholders involved,” highlighted the African operator.
While well test activities with the Deepsea Bollsta rig are due to kick off in October, other blue chip service companies, both local and international are said to have been engaged to offer support services related to the upcoming operations.
Kevin Okyere, Chief Executive Officer of Springfield, explained: “On July 8th, the International Court of Arbitration ruled that Springfield should do further work to complete the unitization process. Following that, and to comply with the ruling, Springfield has worked swiftly on securing a rig and all other technical requirements to appraise and do a well test on Afina-1x well.
“Together with GNPC and GNPC-Explorco, we are excited to work with Northern Ocean on this historic drilling campaign as the first independent African company to operate in deep water. The success of this campaign will result in us being the first independent African producer in deep water as well.”
According to Northern Ocean, the strategic alliance with the African operator encompasses a mutual exclusivity to explore a long-term field development program in Ghana. The well test is estimated to be 30-35 days and will kick off early in the fourth quarter of 2024.
“Northern Ocean’s impressive track record, efficiency and expertise make them the ideal choice for Springfield as together, we have managed to plan and execute this drilling campaign in the shortest possible time, which will be unprecedented. We look forward to building a mutually beneficial long-term relationship that brings significant value to all our stakeholders,” added Okyere.
Upon completing its Ghana program, the rig will return to Namibia to undertake its previously agreed job. Since the arranged day rate is $440,000, excluding mobilization and demobilization, Northern Ocean has an estimated aggregate revenue backlog of between $85 million and $105 million, excluding bonuses, reimbursables, and undeclared options.
Arne Jacobsen, Chief Executive Officer of NOL, commented: “We are excited to announce this strategic alliance agreement with Springfield, which is an important step in the company’s plan to build a solid order backlog. In addition, this alliance creates the foundation for NOL and Springfield to build a long-term relationship in Ghana where Springfield is an important operator.
“The short-term work in advance of the already announced drilling contract proves that it is possible to backfill idle periods in direct discussions with oil companies. Although it is short-term work it brings the Deepsea Bollsta back in operation earlier than anticipated, and NOL adds an important oil company in West Africa to its list of clients.”
The 2020-built Deepsea Bollsta sixth-generation semi-submersible rig is of Moss CS60E design and can accommodate 140 people. The rig can carry out operations in both benign and harsh environments at water depths of up to 3,000 meters.
Northern Ocean’s other semi-submersible rig, Deepsea Mira, came to Africa in Q1 2024 and worked under its drilling contract with TotalEnergies in Namibia before moving to Congo to do more drilling work for the French energy heavyweight.
The drilling contract was slated to end in October 2024 before an extension was secured in August 2024. |
