Building on experience
Norway-based Frontier Drilling ASA has launched plans to deliver its second DP FPSO to be namedSeillean II. However, construction of the vessel is contingent upon the company securing a justifiable contract.
Frontier drafted a concept for the DP vessel based on an Aframax-size tanker conversion. The company then conducted technical and conceptual studies, detailed engineering, procurement lead-time analysis, and cost estimates, and concluded with a projected overall delivery schedule. Frontier estimates a project schedule for the vessel at 18-24 months.
The 265-m concept DP FPSO will come equipped with capacity to store 600 Mbbl, and process up to 30,000 b/d of liquid, 10,000 b/d of water, and approximately 21 MMcf/d of natural gas. The vessel will be capable of operating in water depths to 3,000 m.
Frontier Drilling says it is building on its experience with the DP FPSOSeillean, which has been in continuous operation offshore Brazil since Dec. 24, 1998. The vessel is currently under contract with Petrobras on the Jubarte field through 2009, with options for extension an additional three years.
TheSeillean II when delivered will be joining only a handful of other vessels that are capable of operating in DP mode. Those vessels include Frontier’s Seillean, Bluewater’s Munin FPSO, and Crystal Productions Crystal Ocean and Crystal Sea.
Frontier says it is currently in talks with several companies for use of the vessel, but no commitments have been confirmed. Although it is likely that the vessel will be used offshore Brazil at some point, given its extensive experience with theSeilleanand Petrobras in the region.
In addition, Petrobras has earmarked $23.9 billion for production development in Brazil from 2006-2010, and expects the installation of at least 18 floating production units in the region during that timeframe, according to Guilherme Estrella, E&P director for Petrobras. Therefore, it is likely Petrobras will increasingly require well test/early production services, as it considers this an integral part of field evaluation and development strategy.
FPSOs for Far East
Australia-based AED Oil Ltd. says it is in the process of investigating the use of theMT GerritaI as its early production unit on the Puffin field. The operator previously nominated the Crystal Sea FPSO for early production operations. But due to drilling delays, the field’s early production schedule was pushed back two months and the vessel’s contract was cancelled because it already had future commitments.
AED anticipates that refurbishment of theStena Clyde drilling rig will be completed in time for the unit to begin operations on Puffin in mid-January 2006.
AED signed a Heads of Agreement with Vanguard Oil and Gas Developments Ltd. in August for provision of an FPSO for development of the field. The vessel was originally scheduled to arrive on site for first production in June 2006, but now that theCrystal Sea is unavailable, the operator is investigating the possibility of accelerating the conversion of the M/T Gerrita into an FPSO for early production services as well.
In the meantime, the company says it is continuing to seek other options for the early production from Puffin through the use of an alternative vessel, prior to the originally scheduled arrival of Vanguards’M/T Gerrita.
Meanwhile, New Zealand Overseas Petroleum Ltd. has secured an FPSO for development of the Tui field in the Taranaki basin offshore New Zealand. The operator awarded Prosafe Production Services Pte Ltd. the contract for supply of the floating production unit. The $178-million contact has a fixed term of five years with five, one-year options.
Prosafe has selected the Suezmax tanker,M/T Ionikos, for conversion into the FPSO slated for installation on the field. Prosafe will own and operate the vessel.
The FPSO will be turret-moored in approximately 120 m of water. First production from Tui is expected in 2Q 2007.
Shell secures rigs
Transocean has entered into an agreement with an affiliate of Shell for the upgrade of one of its Sedco 700-series semisubmersible rigs. Under terms of the agreement, Shell has committed to a period of three years and can extend the contract by any period up to a maximum of two years.
The $300-million upgrade of the Sedco-700 series unit is expected to begin in early 2006, with completion in 2Q 2007.
Shell has also contracted the Noble Corp.Bingo 9000 Rig 3 semisubmersible for four years. The unit is one of two ultra deepwater Bingo 9000 semisubmersible hulls that Noble purchased in March 2002.
As a result, theBingo 9000 Rig 3, to be renamed theNoble Danny Adkins, will be completed as a DP unit designed to operate in water depths to 12,000 ft and drill to total depth of 35,000 ft. The semi will also be fitted with living accommodations for 200 people.
The commitment includes the completion of negotiations for a definitive drilling contract by Feb. 9, 2006, unless extended by mutual agreement. The rig will be contracted for a primary term of four years, with Shell having an option for the unit upon contract expiration.
Noble estimates the contract value at approximately $589 - $594 million (exclusive of any mobilization costs), based on assumed operations in the GoM and depending on the final contract equipment configuration.
The rig is currently in Dalian, China, where it has been maintained since it was purchased in 2002. The company estimates that the construction time to complete the unit will be 32 to 36 months from execution of a shipyard construction contract.
Rig bookings
•Anadarko awarded Transocean three-year contracts valued at approximately $985 million for the company’s drillshipsDiscoverer SpiritandDeepwater Millenium. The contracts are expected to begin in June 2007, immediately following the conclusion of current contract commitments with Shell and Anadarko, respectively, in the GoM.
• Diamond Offshore says it has been issued an LOI for use of its fifth generation rigOcean Baroness for a period of three years beginning in early November 2006. Maximum total revenue provided to the company under the LOI would be approximately $400 million.
• Pride International says it has been contracted to operate its jackupPride Missouri for one year in the GoM at $90,000 per day beginning late 1Q 2006. The contactor signed an additional one-year commitment in the GoM for its jackup Pride Florida at a day rate to be determined, also beginning late 1Q 2006.
• BowLeven has signed a contract to extend GlobalSantaFe’s drilling operations offshore Cameroon. The contact calls for the drilling of four wells beginning in November 2006. GlobalSantaFe’sAdriatic VI will perform the drilling operations. •
