HAMILTON, Bermuda – LLOG Bluewater Holdings LLC has contracted the newbuild drillship West Neptune for three years from Seadrill (XOSL:SDRL) for $662 million. There is a one-year extension option.
Seadrill expected to receive the vessel from Samsung Heavy Industries in Geoje, South Korea, in June 2014. It will be outfitted to drill in 10,000 ft (3,048 m) water depth and is capable of working in 12,000 ft (3,658 m) with drilling depths to 37,000 ft (11,278 m)
“The West Neptune will be the first dual BOP rig in the Gulf of Mexico for LLOG. LLOG will initially utilize the rig to perform completions of our Delta House wells,” said Scott Gutterman, president and CEO of LLOG. “Having two BOPs will allow LLOG to complete wells efficiently, saving up to 12 days per completion. Execution of this contract is another key step in accelerating the drilling and development of our extensive portfolio of exploration prospects in the Gulf of Mexico.”
Delta House will be an FPS in Mississippi Canyon 254. It has a design peak capacity of 100,000 b/d of oil and 240 MMcf/d of gas. Commercial operation is scheduled for 2015.