Partners agree to revised rates for upcoming deepwater wells offshore Senegal

Senegal

Offshore staff

MELBOURNE, Australia  ̶  Cairn Energy and its partners have executed contracts for use of the Ocean Rig Athena drillship for a new campaign offshore Senegal.

The drillship, under long-term contract with Cairn’s partner ConocoPhillips, is currently in Angola and should start its mobilization to Senegal in the next few days.

Ocean Rig Athena is a new seventh-generation, dual derrick, dynamically positioned drillship (Enhanced SAIPEM 10000 design) delivered in March 2014. It began a three-year drilling contract for ConocoPhillips offshore Angola in June 2014.

According to FAR, another of the Senegal partners, ConocoPhillips has an option to extend the duration of the contract by two more years beyond the cut-off date of May 2017.

The day rate for the Senegal joint venture has been adjusted downward to reflect prevailing market conditions. Day rates have dropped by up to 50% for deepwater drilling units offshore Africa, FAR says.

The firm three-well program includes two appraisal wells on the deepwater SNE-1 oil discovery, plus coring and testing, and one exploration well to further evaluate the shelf area, all to be completed by mid-2016.

SNE-2 and SNE-3 will be drilled first with the aim of attaining the threshold of reserves needed for an economic field development (around 200 MMbbl, according to FAR).

The third well, BEL-1, will be on the Bellatrix prospect, mapped by FAR to contain a potential 168 MMbbl of oil.

10/14/2015

 

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