Rig sharing agreement good news for oil and gas exploration offshore Canada

Source: Newfoundland & Labrador Oil and Gas Industries Association

The announcement of a new rig-sharing agreement for the mobile drilling unit Henry Goodrich by Husky Energy, Statoil Canada, and Suncor Energy is positive news for the local oil & gas industry says the Newfoundland & Labrador Oil & Gas Industries Association (NOIA). The three oil companies signed an agreement to share the rig for a three year period, commencing in November 2010.

“Cooperation on rig sharing reduces exploration cost by eliminating the need to mobilize a rig multiple times for individual company needs,” said Robert Cadigan, President & CEO of NOIA. “This on heels of Husky’s 2-year extension to the GSF Grand Banks bodes well for our local industry and provides continuing opportunity for our supply and service companies.”

Rig-sharing agreements enable oil operators to pursue additional development and exploration drilling opportunities. The agreement opens up the possibility of new discoveries which could lead to future developments in industry.

“The Henry Goodrich has proven capable of handling our harsh environment, so it’s an excellent choice for the co-venturers,” said Cadigan. “This agreement is proof that operators offshore Newfoundland & Labrador are serious about increasing exploration in hopes of sustaining development well into the future.”

The supply and service community is excited by this announcement and we congratulate Statoil, Husky and Suncor on their hard work and foresight.

Details about the rig’s schedule are still being worked out and in addition to the primary contract term of three years, the agreement includes two one-year renewal options.

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