North Sea Reporter

Published by KL ENERGY PUBLISHING LTD.

North Sea Reporter is an established and respected weekly publication which provides in-depth news and analysis of the NW European offshore oil and gas industry. 

Rig Market

Diamond Offshore has seen the utilisation rate for its North Sea fleet rise sharply for this year, plus a notable improvement too in 2019, due to new contracts agreed with Chevron and Maersk Oil.  The standard semi-submersible Ocean Valiant was approaching the end of its contract term with Maersk Oil in the UK sector, scheduled to expire later this month. However, Diamond has confirmed Maersk has agreed an extension deal for the rig that will run until December 2019. Diamond describes the extension contract as being well-based, but does not specify if this is drilling activity or a continuation of well abandonment work, although it is confirmed the rig will remain in the UK sector.

Construction

Hurricane Energy reports a key project milestone has been achieved for the early production system on the Lancaster field, primarily in west of Shetland block 205/21a, with completion of buoy dry trial fit testing operations by Bluewater Energy Services and Dubai Drydocks World in Dubai. Under an EPC contract with Bluewater, the FPSO Aoka Mizu is currently undergoing repair, upgrade and life extension work at the Drydocks World yard. The yard is also carrying out fabrication of the buoy, which will form part of the project’s mooring system. Completion and outfitting of the buoy is on schedule, with sailaway from Dubai expected in the second quarter.

Decommissioning

Faroe Petroleum is selling to Suncor Energy 17.5% of its 25% stake in PL586, covering Norwegian blocks 6406/11 and 6406/12 and containing the Fenja development, for $54.5 million in cash. Faroe says its decision to retain a 7.5% interest in Fenja underlines its support for the project and fully aligning its equity at 7.5% across the Greater Njord area, comprising Njord, Fenja, Bauge and Hyme.  As detailed in the Fenja PDO submitted on 19 December, VNG expects total gross recoverable reserves from the development of around 97 million barrels of oil equivalent, 72% of which is oil.   The deal is expected to be completed in the first half of this year.

 

Weekly coverage includes:

  • Rig Market - contracts, dayrates and utilisation
  • Drilling – a round-up of North Sea activity  
  • Construction and engineering
  • Field development and production
  • Contract awards
  • Company news
  • Data tables of industry activity
  • Mediterranean & W. Africa briefing
  • News briefs