Offshore staff
NASSAU, The Bahamas – Bahamas Petroleum Co. (BPC) is re-scheduling drilling of its first exploration well (Perseverance #1) off The Bahamas to mid-October onwards.
Due to the spread of the COVID-19 virus, safe and responsible operations for the 45-60-day program in the planned May/June timeframe can no longer be assured, the company said.
The impact of the virus, both globally and in The Bahamas, also constitutes a force majeure event under the terms of the company’s licenses. It has accordingly notified the Bahamian government and anticipates securing an extension to the licence terms.
BPC pointed out that the growing national and regional shutdowns are impacting how drilling rigs and other critical equipment undergo appropriate preparations and certification for drilling; and travel bans and border closures are making it difficult for key project personnel, staff, crew and contractors to move freely to be where they are needed.
Last week, The Bahamas declared a state of emergency with a curfew is now in place and most international flights in and out of the islands suspended. For inbound flights that are permitted, mandatory isolation on arrival has been imposed.
October onwards is the next feasible window for the well with the Bahamian hurricane season set to start in July.
Previously BPC indicated costs for Perseverance #1, in the range $25-30 million, and depending on real-time drilling results, up to $5 million more.
The company does not expect this estimate to change as a result of rescheduling, although it will re-evaluate all major contract and supply arrangements.
Cancellation or postponement of international drilling programs could also lead to greater rig availability and potentially lower rig pricing in the revised drilling window, it pointed out.
BPC is in talks with various contractors on securing a suitable rig for the revised window.
The company has suspended the duties of its Houston-based drilling team for the time being until normal activities are able to resume.
03/25/2020
