David Paganie • Houston
Petrobras secures rigs for long-term contracts
Keppel Offshore & Marine Ltd. secured a $270 million contract with Queiroz Galvão Perfurações (QGP) to design and build its first drilling rig for deployment in Brazilian waters for Petrobras.
The semisubmersible rig will be built based on the patented DSS 38, 5th generation deepwater design, created by Keppel O&M’s Deepwater Technology Group and Marine Structures Consultants of The Netherlands.
The DSS 38 semi is rated to drill to 30,000 ft below the mud line in up to 9,000 ft of water. The 100-m long rig will be fitted with a 70-m wide main deck for maximum operational displacement of approximately 40,000 metric tons at a draft of 20.5 m.
The maximum variable deck load of the DSS 38 is 5,500 metric tons, with accommodation facilities for up to 130 people. It has both vertical and horizontal riser storage. The rig’s DP-2 system comprises eight 3,000 kW ABS-approved azimuthing thrusters.
The DSSTM-designed semi will be delivered in 3Q09 to carry out a seven-year drilling program for Petrobras.
Petrobras secured a second semisubmersible,PetroRig 1, for a long-term commitment as well.
Petrobras will use Larsen Oil and Gas Ltd.’s newbuild rig offshore Brazil and in the Gulf of Mexico, under a $700-million, five-year contract.
The PetroMENA-owned rig is scheduled to be delivered from Jurong Shipyard in Singapore in 2Q09.
In other rig news, Transocean completed the sale of its semisubmersibleTransocean Explorer and drilling barge Searex XII for a net total of $120.1 million.
The semisubmersible was sold for $101 million, and the barge, idle since 1999, went for $19.1 million. Both transactions were completed in the first half of this year.
Drillers playing the slots
Aberdeen-based Peak Well Management Ltd. says a number of its clients, particularly the small and medium sized exploration companies, are taking up available drilling slots from larger oil companies that have rigs on long-term contracts. Peak says a number of the larger oil companies may have windows in their long-term rig contracts that are potentially available for assignment.
Peak recently concluded two such deals on behalf of Silverstone SNS Ltd. and Serica Energy Plc, for the use of theEnsco 92 jackup on two wells in the North Sea. The Ensco 92 is currently on long-term charter to BP from October 2006.
The rig, which will be managed by Peak on both wells, will drill for Silverstone on block 49/21. Drilling is expected to begin late August or early September 2006 for an estimated duration of 40 days.
The rig will then move to drill the Oak exploration well on Serica’s block 54/1b in early October 2006 for an estimated duration of 30 days.
Peak is optimistic that it will secure more re-assigned drilling slots in the program of drilling rigs which have already been contracted under long-term agreements.
FSO contracts
Cosco Corp. Ltd. through subsidiary Cosco Shipyard Group secured its first FSO newbuild and conversion contracts totaling $74.8 million. The newbuild contract is valued at $27.5 million.
Construction of the 52,000-dwt, newbuild FSO will be built at Cosco’s Zhoushan Shipyard beginning in January 2007.
“This (newbuild contract) marks our group’s entry into the lucrative offshore engineering market,” says Ji Hai Sheng, vice chairman and president of Cosco Corp. and vice chairman of Cosco Shipyard.
Modec picked up an FSO contract as well. The company signed an agreement with Japan Vietnam Petroleum Co. Ltd. (JVPC) to supply and operate a floating, storage unit for installation on the JVPC-operated Rang Dong field, offshore Vietnam. The field is jointly operated by JVPC, ConocoPhillips, and PetroVietnam E&P Co.
The Rang Dong field is approximately 135 km southeast of Vung Tau on block 15-2 in 60 m of water. The field’s FSO will be fitted with capacity to receive 60,000 b/d of oil and store 350,000 bbl.
Modec’s contracted workscope calls for engineering, procurement, construction, installation, commissioning, and operation of the FSO and its external turret mooring system.
Modec will own and operate the FSO for an initial nine-year term with the option to extend an additional five years in one-year increments. First oil from Rang Dong is expected in 3Q08.
Ezra building accommodation/crane barge
Ezra Holdings Ltd. subsidiary Lewek Shipping Pte Ltd. issued an $8.85-million contract to Labroy Shipbuilding Offshore Ltd. for delivery of a 300-ft accommodation/crane barge.
The barge will come equipped with a heavy-lift pedestal crane, accommodations for 300 people, and a helideck suitable for Sikorsky-type helicopters. The barge is scheduled to be delivered in 1Q07.
