Industry News

Truls Olsen, Head of Research for Fearnley Securities, remembers the last time “money rained” onto the drilling sector. At times during that period from roughly 2004 to 2014, risk aversion was effectively zero, with companies financing newbuilds speculatively without contracts “left, right and center,” he said. Could the galloping oil price growth in 2022 trigger a similar “party money” investment environment for the industry?“Today, that’s not going to happen,” Mr Olsen said during a panel discussion on attracting capital at the 2022 IADC World Drilling Conference in Paris on 22 June. The industry has always had a simple mission –

Seadrill was awarded contract extensions for the AOD I, AOD III and West Callisto jackups for work offshore in the Arabian Gulf.The firm term of each contract is three years with commencement in direct continuation of the current contracts. AOD I, AOD III and West Callisto are now committed to June 2025, December 2025 and November 2025, respectively. The total contract value for the three contracts is approximately $361 million.“We are pleased to be extending these rigs in the Arabian Gulf, solidifying Seadrill’s strong market share and further extending our impressive backlog. These contracts demonstrate the value customers place on

Noble Corp has entered into an asset purchase agreement to sell five jackups for $375 million to a newly formed subsidiary of Shelf Drilling. The sale agreement includes the rigs Noble Hans Deul, Noble Sam Hartley, Noble Sam Turner, Noble Houston Colbert and Noble Lloyd Noble, along with all related support and infrastructure. Associated offshore and onshore staff are expected to transfer with the rigs.Following the sale, Noble expects to continue to perform the current drilling program for the Noble Lloyd Noble under a bareboat charter arrangement with Shelf Drilling until Q2 2023, when the primary term of its current

Energean announced that it has exercised options to drill two further wells offshore Israel with Stena Drilling’s Stena IceMAX drillship.The first well will target the Hermes prospect, located in Block 31, and is expected to spud in August 2022. The primary target is the Tamar A sands. Hermes forms one segment of a larger cluster of structures similar to how the Athena discovery is one segment of the Olympus Area. The target for the second well is still under consideration and is largely contingent on the results of the Hermes well.”The exercise of these options, will help us to reach

Vantage Drilling has entered into a drilling services contract with a subsidiary of TotalEnergies for ultra-deepwater Tungsten Explorer drillship. The contract is for a minimum duration of 225 days with three possible options for extension. The drillship is currently operating in the Mediterranean where it will be drilling up to two wells and from there it is planned to mobilize to West Africa in the third quarter of 2022 at the earliest. Total contract value over the firm term of the contract is approximately $79 million.“We are delighted that the Tungsten Explorer will go back to work for TotalEnergies. This

Saipem has signed an agreement with KCA Deutag (KCAD) to sell the entirety of its onshore drilling operations in exchange for a cash consideration of $550 million, plus 10% stake in the combined entity. The transaction does not entail any financial debt transfer from Saipem to KCAD.Saipem operates its onshore drilling business globally outside Italy, with a focus in the Middle East and Americas, in 13 countries with around 4,000 people and with a portfolio of 83 proprietary land rigs. The company said in a statement that the sale would allow it to focus on its offshore drilling business.Saipem’s onshore

Aquadrill and a subsidiary of Vantage Drilling have reached an agreement with ONGC to provide the Polaris, a sixth-generation drillship, for a nine-month contract for operations in India. The total contract value is expected to be approximately $66.5 million and work is expected to commence in Q4 2022, following relocation of the rig from Sri Lanka to Malaysia for reactivation, contract preparation and upgrades, including equipping the rig with the piping required for future use of a managed pressure drilling system.In addition, Aquadrill and a subsidiary of Energy Drilling Management have reached an agreement to provide the T-15, a tender

ADNOC Drilling has signed a sale and purchase agreement (SPA) to acquire two premium jackups. The company said in a statement that the agreement keeps it “firmly on its growth trajectory as it enables ADNOC’s ambitious targets to deliver 5 million bpd production capacity and realize gas self-sufficiency for the UAE, while increasing potential for greater shareholder returns.”“We are extremely pleased to have completed the acquisition of these two premium rigs, which will further bolster our position as a regional drilling leader and complement our already high quality offshore jackup fleet. This is another important step in our fast-paced expansion