KrisEnergy spuds Mancharee-1 well in Thailand

KrisEnergy Ltd. (KrisEnergy), an independent upstream oil and gas company, announces that the ‘West Cressida’ jack-up rig has commenced drilling of the Mancharee-1 exploration commitment well in block G10/48 in the Gulf of Thailand, where the Company is developing the Wassana oil field. Water depth at the Mancharee-1 well location is 170 feet (51.8 metres). The well is planned to be drilled to a total depth of 12,420 feet measured depth (-10,650 feet total vertical depth subsea) and will evaluate a series of stacked sandstone reservoirs of Miocene and Oligocene age. Mancharee-1lies to the west of the Mayura oil discovery, which requires further appraisal. G10/48 also holds the Niramai oil accumulation, which lies to the north of the Wassana oil development. Chris Gibson-Robinson, KrisEnergy’s Director Exploration & Production, commented: “Mancharee-1is the first exploration well to be drilled in G10/48 since we took over operatorship of the block in May 2014. We are also pressing ahead with the Wassana project and have locked in vital elements for the development such as the processing facilities and the rig to drill the development wells. Our progress is in line with our timetable for first oil in the second half of 2015.”KrisEnergy holds 100% working interest in G10/48, which covers 4,696 sq km over the southern section of the Pattani Basin in water depths up to 60 metres.

'Sevan Louisiana' operational update

Sevan Drilling has released an operational update regarding the ‘Sevan Louisiana’ semisub. ‘Sevan Louisiana’ has temporarily halted operations due to a control system leak on the BOP. In order to repair the leak, it was necessary to temporarily suspend the well in a safe manner and recover the upper section of the BOP to the surface. The unit was in the process of drilling an exploration well on the Humphrey prospect in the US GoM when the incident occurred.

KrisEnergy come up dry with the Mancharee-1 well

KrisEnergy Ltd (KrisEnergy), an independent upstream oil and gas company, has announced that drilling operations have concluded at the Mancharee-1 exploration commitment well in G10/48 in the Gulf of Thailand, where the company is developing the Wassana oil field. Mancharee-1, which commenced drilling on 8th August 2014, reached a total depth at 12,205 feet (3,720 metres) measured depth, or 10,460 feet (3,188 metres) true vertical depth subsea. Gas shows were encountered at several levels but no significant pay zones were identified. Water depth at the well location is 170 feet (51.8 metres). Mancharee-1, the final commitment well in the third exploration phase of the licence, was drilled using the ‘West Cressida’ jack-up rig.

'Sevan Louisiana' back to work for LLOG by end of September

As previously reported by Sevan Drilling on August 19th and August 27th, the ‘Sevan Louisiana’ continues to encounter operational difficulties due to the BOP and supporting systems. The original issue with the BOP has been rectified, however the BOP tensioner support systems still needs further repair and replacements prior to operation. Spare equipment has been sourced from Seadrill's capital spare pool, and initial indication for return to service is by the end of September.

Lundin spuds Kitabu-1 well in Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has spud the Kitabu-1 exploration well in Block SB307/308, offshore Sabah, Malaysia. The Kitabu prospect is a stratigraphic trap located four kilometres to the north of the Shell-operated producing South Furious 30 oil field with target reservoirs in on lapping turbidite sandstones of the same Miocene sequence. Lundin Petroleum estimates the Kitabu prospect to have the potential to contain unrisked, gross prospective resources of 71 million barrels of oil equivalent.Kitabu-1 is a vertical well to be drilled by the jackup rig West Prospero to a depth of 2,270 metres in approximately 50 metres water depth. The drilling of the well is expected to take approximately 35 days. Lundin Petroleum holds a 42.5 percent interest in Block SB307/308 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partners are EnQuest with a 42.5 percent interest and Petronas Carigali with a 15 percent interest. Lundin Malaysia BV operates seven blocks in Malaysia, namely PM307, PM308A, PM308B, PM319, PM328, SB303 and SB307/308.

Lundin comes up dry with Kitabu-1

Kitabu-1 exploration well, offshore Sabah, Malaysia, has been completed as a dry hole Lundin Petroleum AB (Lundin Petroleum) has completed the Kitabu-1 well located in Blocks SB307/SB308, offshore Sabah, Malaysia. Objectives of the Kitabu-1 well were Miocene aged turbidite sands of similar age to the Shell operated South Furious 30 oil field, approximately four kilometres to the north. However, the primary reservoir interval resulted in being a poor quality siltstone, and no hydrocarbon shows were encountered in the well. The well has reached planned total depth of 2,270 metres and is to be plugged and abandoned as a dry hole. The well was drilled using Seadrill’s ‘West Prospero’ jackup rig.

Seadrill updates status of Petrobras contracts

At the time of its third quarter earnings release in November 2014, Seadrill Limited ("Seadrill") announced that it had received extensions for its ultra-deepwater semisubmersibles the West Taurus and West Eminence from Petrobras in Brazil. However, due to recent developments within Petrobras, Seadrill no longer believes the contracts will be concluded in the timeframe or on the previously approved commercial terms. Consequently, Seadrill will remove USD1.1bn from the backlog reported in its third quarter earnings release. Seadrill continues to work with Petrobras and its partners to find a mutually agreeable commercial solution. Also at the time of the third quarter earnings release Seadrill announced approval for contract awards on the Libra Field from Petrobras for the ultra-deepwater drillships the West Tellus and West Carina. The final contracts have been signed and commencement of operations is expected to begin in the second quarter of 2015.

BP issues termination notice for 'West Sirius'

Seadrill Partners LLC ("Seadrill Partners") has received a notice of termination from BP Exploration & Production Inc. ("BP") for the contract for the West Sirius which will be effective after having completed the current well and demobilization, which Seadrill Partners estimates to be by early May 2015. Prior to the cancellation notice, the dayrate and term for the West Sirius and West Capricorn contracts were swapped. The West Sirius dayrate was decreased by USD40,000 per day and the term was decreased by two years to expire in July 2017 while the dayrate for the West Capricorn was increased by USD40,000 per day and the term was extended by two years to expire in July 2019. Amortized payments for the West Capricorn such as mobilization and upgrades will continue on the original schedule ending in July 2017. In accordance with the cancellation provisions in the West Sirius contract, Seadrill Partners will receive payments over the remaining contract term, now expiring in July 2017. As a result of the termination, Seadrill Partners' backlog will decrease by approximately USD160 million. After taking into consideration the expected decrease in operational expense while the unit is cold stacked, and the fact that termination fee payments will not be impacted by downtime, Seadrill Partners does not expect a material impact on its cash flow position over the contract period through July 2017.

Lundin spuds Mengkuang-1 well in Malaysia

Lundin Petroleum AB (“Lundin Petroleum”) is pleased to announce that its wholly owned subsidiary Lundin Malaysia BV (“Lundin Malaysia”) has resumed exploration drilling in Malaysia with the spud of Mengkuang-1 exploration well in license PM307, offshore Malaysia. The well will target hydrocarbons in Miocene aged sands 75 km to the northwest of the Bertam field operated by Lundin Malaysia. Mengkuang-1 will be drilled with the West Prospero jack-up rig to a total depth of approximately 1,300 metres below mean sea level. The drilling of the well is expected to take approximately 30 days. Lundin Malaysia holds 75 percent working interest in PM307. Partner is PETRONAS Carigali Sdn Bhd with 25 percent working interest. Lundin Malaysia operates six blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328 and SB307/308.

Lundin Petroleum completes the Mengkuang-1 exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has made a small gas discovery with the Mengkuang-1 exploration well in license PM307, offshore Malaysia. The well targeted hydrocarbons in Miocene aged sands 75 km to the northwest of the Bertam field operated by Lundin Malaysia. Mengkuang-1 was drilled with the West Prospero jack-up rig to a total depth of 1,259 metres below mean sea level. The well encountered 9 metres of gas pay in the I-35 group Miocene channel sands. The well was plugged and abandoned. Lundin Malaysia holds 75 percent working interest in PM307. Partner is PETRONAS Carigali Sdn Bhd with 25 percent working interest. Lundin Malaysia operates six blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328 and SB307/308.

Lundin Petroleum commences Selada exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has commenced drilling of the Selada-1 exploration well in Block PM308A, offshore Malaysia. The well will target hydrocarbons in Miocene aged sands and is located 14 km to the south of the Bertam field operated by Lundin Malaysia. The Selada-1 exploration well will be drilled with the West Prospero jack-up rig to a total depth of approximately 1,700 metres below mean sea level. The drilling of the well is expected to take approximately 30 days. Lundin Malaysia is the operator of and holds a 75 percent working interest in PM308A with PETRONAS Carigali Sdn Bhd holding a 25 percent working interest. Lundin Malaysia operates seven blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328, SB303 and SB307/308.

Lundin Petroleum completes Selada exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has completed the Selada-1 exploration well in Block PM308A, offshore Malaysia. The well was dry and has been plugged and abandoned. The well was targeting hydrocarbons in Miocene aged sands approximately 14 km to the south of the Bertam field operated by Lundin Malaysia. Selada-1 was drilled with the West Prospero jack-up rig. Lundin Malaysia holds 75 percent working interest in PM308A. Partner is PETRONAS Carigali Sdn Bhd with 25 percent working interest. Lundin Malaysia operates seven blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328, SB303 and SB307/308.

Lundin Petroleum commences Imbok exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has commenced drilling of the Imbok-1 exploration well in Blocks SB307 and SB308, offshore East Malaysia. The Imbok prospect is in shallow water and lies to the east and south of two major producing fields in offshore East Malaysia. The well will target hydrocarbons in Miocene aged sands. Imbok-1 will be drilled with the West Prospero jack-up rig to a total depth of approximately 1,700 metres below mean sea level. The drilling of the well is expected to take approximately 30 days. Lundin Malaysia holds 85 percent working interest in SB307 and SB308. Partner is PETRONAS Carigali Sdn Bhd with 15 percent working interest. Lundin Malaysia operates seven blocks in Malaysia, namely PM307, PM319, PM308A, PM308B, PM328, SB307/308 and SB303.

Lundin Petroleum completes Imbok exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has completed the Imbok-1 exploration well in Block SB307/308, offshore East Malaysia. The well encountered minor oil shows and was plugged and abandoned. The well was targeting hydrocarbons in Miocene aged sands. Imbok-1 was drilled with the West Prospero jackup rig. Lundin Malaysia holds 85 percent working interest in SB307/308. Partner is PETRONAS Carigali Sdn Bhd with a 15 percent working interest. Lundin Malaysia operates six Blocks in Malaysia, namely PM307, PM319, PM308A, PM328, SB303 and SB307/308.

Lundin Petroleum commences Bambazon exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has commenced drilling of the Bambazon exploration well in Block SB307/SB308, offshore East Malaysia. The Bambazon prospect is in shallow water and lies to the north of a major producing field in offshore East Malaysia. The well will target hydrocarbons in Miocene aged sands. Bambazon will be drilled with the West Prospero jack-up rig to a total depth of approximately 1,250 metres below mean sea level. The drilling of the well is expected to take approximately 25 days. Lundin Malaysia holds 85 percent working interest in SB307/SB308. Partner is PETRONAS Carigali Sdn Bhd with a 15 percent working interest. Lundin Malaysia operates six Blocks in Malaysia, namely PM307, PM319, PM308A, PM328, SB307/308 and SB303.

Lundin Petroleum completes Bambazon exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has completed the Bambazon exploration well in Block SB307/SB308, offshore East Malaysia. The Bambazon well encountered approximately 15 metres of net logged reservoir pay with oil shows over three main reservoir intervals and the well has been plugged and abandoned and will be expensed in the first quarter of 2016. Bambazon was drilled with the West Prospero jack-up rig to a total depth of approximately 1,380 metres. Lundin Malaysia holds 85 percent working interest in SB 307/308. Partners are PETRONAS Carigali Sdn Bhd with a 15 percent working interest. Lundin Malaysia operates six blocks in Malaysia, namely PM307, PM319, PM308A, PM328, SB303 and SB307/308.

Lundin Petroleum commences Maligan exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has commenced drilling of the Maligan exploration well in Block SB307/SB308, offshore East Malaysia. The Maligan prospect is in shallow water and lies to the north of a major producing field in offshore East Malaysia. The well will target hydrocarbons in Miocene aged sands. Maligan will be drilled with the West Prospero jack-up rig to a total depth of approximately 1,700 metres below mean sea level. The drilling of the well is expected to take approximately 30 days. Lundin Malaysia holds 85 percent working interest in SB307/SB308. Partner is PETRONAS Carigali Sdn Bhd with 15 percent working interest. Lundin Malaysia operates six Blocks in Malaysia, namely PM307, PM319, PM308A, PM328, SB307/308 and SB303.

Lundin Petroleum completes Maligan exploration well, offshore Malaysia

Lundin Petroleum AB (Lundin Petroleum) announces that its wholly owned subsidiary Lundin Malaysia BV (Lundin Malaysia) has completed the Maligan exploration well in Block SB307/SB308, offshore East Malaysia. The Maligan well was drilled with the West Prospero jack-up rig to a total depth of approximately 1,380 metres and encountered significant gas shows. The well has now been plugged and abandoned and will be expensed in the first quarter of 2016. Lundin Malaysia holds 65 percent working interest in SB 307/308. Partners are DYAS B.V. with a 20 percent working interest and PETRONAS Carigali Sdn Bhd with a 15 percent working interest. Lundin Malaysia operates six blocks in Malaysia, namely PM307, PM319, PM308A, PM328, SB303 and SB307/308.

SDRL - Announces contract extension for West Tellus

Seadrill Limited ("SDRL" or "the Company") has been awarded an 18 month contract extension for the drillship West Tellus by Petroleo Brasileiro SA ("Petrobras"), commencing in April 2018 and securing work for the unit through the end of October 2019. The total backlog for the contract extension is approximately $164 million. As part of the agreement to extend the West Tellus, the Company has agreed to a dayrate reduction on the current contract effective from February 26th, 2016, resulting in a $132 million reduction in backlog. The net effect of this agreement is a $32 million increase in backlog.

Seadrill Receives Notice of Contract Cancellation for the West Hercules

Seadrill Limited ("Seadrill" or the "Company") has received a notice of termination for convenience from the current operator related to the contract for the West Hercules which was originally contracted for drilling in Norway with North Atlantic Drilling Ltd.. In accordance with the contract, the Company will receive a lump sum payment of approximately $61 million, plus dayrate and reimbursement of costs associated with demobilization of the rig. The West Hercules is currently being marketed for new work.

Cancellation of rig contract

Statoil has, on behalf of the Aasta Hansteen licence, decided to cancel the contract with Seadrill for the West Hercules drilling rig. On contract with Statoil since 31 January 2013, the rig has carried out an exploration campaign offshore Newfoundland in Canada for the past 18 months. According to the original plan the Aasta Hansteen licence was to take over the rig in the second quarter of 2016 for a drilling campaign to be started around 1 July 2016. In the autumn of 2015 it was decided to postpone the Aasta Hansteen field start-up one year until the last half of 2018, and consequently the field drilling programme will also be postponed. One of the reasons is that it is not preferable to complete the wells too early before production start-up. The contract for West Hercules was originally to expire on 31 January 2017.

Statoil completes efficient exploration drilling campaign offshore Newfoundland

Statoil, along with its partners, has finalized a 19-month exploration drilling program offshore Newfoundland. The purpose of the drilling program was to increase the robustness of the Bay du Nord project and to test new areas of the Flemish Pass Basin. Nine wells were drilled safely and efficiently by the Seadrill West Hercules in the Flemish Pass Basin, located approximately 500 kilometres east of St. John’s, Newfoundland and Labrador. The results have improved Statoil’s understanding of the frontier Flemish Pass Basin. The drilling program included four exploration wells in close vicinity of the 2013 Bay du Nord discovery, as well as three appraisal wells on the discovery. In addition, two exploration wells were drilled in areas outside the Bay du Nord discovery. The program was conducted in a harsh offshore environment; however, with strong operational and HSE performance, setting several records on drilling speed during the campaign. The drilling program has resulted in two discoveries of oil at the Bay de Verde and Baccalieu prospects in the Bay du Nord area, both of which add to the resource base for a potential development at the Bay du Nord discovery. The appraisal and near-field exploration of the Bay du Nord discovery has reduced key reservoir uncertainties and confirmed that the volumes are within the original volume range of the 300 to 600 million barrels of recoverable oil initially estimated by Statoil in 2013, but potentially towards the lower end of the range. “We are encouraged by the discoveries in the Bay de Verde and Baccalieu wells and the results of the appraisal wells,” said Erling Vågnes, senior vice president, Statoil Exploration, Northern Hemisphere. “Based on the improved understanding of the Flemish Pass Basin petroleum system, we are maturing further prospects that may add volumes to Bay du Nord.” “The Flemish Pass Basin offshore Newfoundland is a frontier area, where only 17 wells have been drilled in the entire basin – in an area that is 30,000 km2,”said Vågnes. “This drilling campaign has been critical both to maturing the Bay du Nord discovery as well as evolving our knowledge of the greater basin and Newfoundland offshore – which remains a core exploration area for Statoil.” The drilling program began in November 2014 and was extended by one month to incorporate the drilling of Baccalieu, a well on a licence awarded by the C-NLOPB in the 2015 land sale, which Statoil was able to progress from access to well-completion in four months. Statoil’s assessment of the commercial potential of the Bay du Nord discovery is ongoing. “The recent drilling program has been critical to Statoil’s continued assessment of Bay du Nord, and work is underway to evaluate the results related to proceeding with a potential Statoil-operated development in the Flemish Pass Basin,” said Paul Fulton, president, Statoil Canada.

Seadrill Receives Notice of Contract Cancellation for the West Pegasus

Seadrill Limited ("SDRL" or "the Company") has received a notice of termination from Pemex Exploracion y Servicios ("Pemex") for the West Pegasus drilling contract (the "Contract") effective 16 August 2016. Seadrill has disputed the grounds for termination and is reviewing its legal options. During the second quarter of 2015 Seadrill signed a provisional commitment for a two year extension to the Contract with Pemex for the West Pegasus. In conjunction with the extension, the dayrate for the remaining term of the initial contract was reduced. The extension of the Contract was finalized during the first quarter of 2016. As part of this agreement, Seadrill and Seamex Limited ("Seamex"), our 50% owned joint venture with Fintech, agreed to reduce the dayrate on five jack-ups for a period of 365 days. The agreement to reduce the dayrates of the existing contracts was contingent upon final confirmation of the two year extension of the West Pegasus by Pemex management. In the event of termination, Seadrill and Seamex are entitled to recover the dayrate concessions as well as the demobilization for the West Pegasus. In addition, Seadrill will seek reimbursement of certain costs incurred in anticipation of the extension.

Gas discovery on the Valemon field in the North Sea – 34/11-6 S

Statoil Petroleum AS, operator of production licence 193 D, has concluded the drilling of wildcat well 34/11-6 S. The well was drilled from the Valemon facility, 160 km northwest of Bergen. The objective of the well was to prove petroleum in the Middle Jurassic (the Brent group). The well encountered two gas columns of about 80 and 35 metres in the Tarbert and Ness formations, respectively. There were 50 metres of sandstone with moderate to good reservoir quality in the Tarbert formation and 10 metres of sandstone with poor reservoir quality in the Ness formation. Preliminary estimates place the size of the discovery between 3 - 8 million standard cubic metres (Sm3) of recoverable oil equivalents. The well will be completed and will start production from the Valemon facility. Data acquisition was carried out. This is the first exploration well in production licence 193 D. Well 34/11-6 S was drilled to a vertical depth of 4337 metres below the sea surface, and was terminated in the Drake formation in the Lower to Middle Jurassic. Water depth at the site is 133 metres. Well 34/11-6 S was drilled by the West Elara drilling facility, which is permanently stationed at the Valemon facility.

Ayamé-1X Well Spud

African Petroleum is pleased to announce that the Ayamé-1X exploration well, offshore Côte d’Ivoire, was spudded on Saturday 29 April 2017 using the Seadrill West Saturn Drillship. The well, operated by Ophir Energy, is located on the CI-513 licence. African Petroleum holds a 45% interest in the licence, with Ophir Energy holding 45% and PETROCI the remaining 10%. The Ayamé -1X well will target Santonian and Turonian turbidite channel complexes through a water depth of 2,835 metres, with planned total depth (“TD”) at 5,459 metres. The well is expected to reach TD in approximately 30 days from spud.

Ayame-1X Well Result

Ophir announces that the Ayame-1X exploration well in Block 513, Cote D’Ivoire, has reached total depth of 5,394m True Vertical Depth Sub Sea. The well was targeting a number of turbidite channel complexes of Santonian and Turonian age. The prospective reservoir intervals were encountered as prognosed. Oil shows were recorded in the target reservoirs, but significant hydrocarbons were not encountered. To date the operation has been conducted without incident, having successfully drilled and cased the longest riser-less surface section in the region and reached TD in the subsequent hole section with a single bit run (another basin first). Operations are forecast to complete by the 22nd May at an estimated final cost of $20.5 million gross. Full analysis and interpretation of the data is ongoing, but the well will be plugged and abandoned as a dry hole. Ophir has a 45% operated interest in Block 513.

Sevan Drilling raises new funds for newbuild construction

Sevan Drilling ASA has announced that the company has successfully raised over US$179m through a private share placement of 250,000,000 shares. The company required the influx of funds in order to fill a gap in its possible funding after it saw a reduced dayrate for its Sevan Brasil unit operating in Brazil due to issues with the units blow out preventer. Seadill used the share placement to increase its share in Sevan Drilling up to 30.31%, with Sevan now hoping to secure charter contracts for its two newbuild units currently under construction in China.

Seadrill orders two new 400ft jackup rigs from DSIC Offshore in China

Seadrill has ordered two new Friede & Goldman JU-2000E designed jackups from Dalian Shipbuilding (DSIC Offshore) in China for delivery in the first and second quarters of 2015. Both units will be capable of operating in 400ft of water and drilling down to 30,000ft with each unit costing US$230 million to construct. The orders come on the back of increasing demand for newer more capable jackup rigs, with Seadrill also receiving two additional jackup construction options at Dalian for deliveries in the third and fourth quarters of 2015.

Seadrill continues newbuild expansion with orders for two 400ft jackup rigs

Seadrill has ordered a further two newbuild jackup rigs from Dalian Shipbuilding (DSIC) in China at a cost of US$230 million each. The two newbuild units are options that Seadrill has exercised from the order of two similar jackup rigs that the company placed with the yard in January 2013, with the two units both being based on the Friede & Goldman JU-2000E design. Delivery is scheduled for Q3 and Q4 2015. The orders mean that Seadill now currently have 27 rigs under construction, as the rig operator look to aggressively expand their current fleet with high-specification units.

North Atlantic Drilling completes sale and leaseback of newbuild jackup

North Atlantic Drilling (NADL) today announced that the company has completed the sale and leaseback of the company’s newbuild ‘West Linus’ jackup rig in deal struck with Ship Finance International Limited, another company owned by NADL’s majority shareholder John Fredriksen. The total deal is worth US$600 million, with the ‘West Linus’ being chartered by NADL for an initial 15 year term beginning from the delivery of the unit from the yard. NADL will also have the option to buy the unit back for a set price of US$380 million after the first five years of operation. The unit will continue to be recognised as an asset of NADL’s balance sheet instead of Ship Finance’s.

Keppel delivers final AOD jackup rig 'AOD III'

Asia Offshore Drilling (AOD) has received the company’s third and final jackup rig the ‘AOD III’ from Keppel FELS shipyard in Singapore where the unit was constructed. The ‘AOD III’ unit is the final rig of a three unit premium jackup order placed by AOD in October 2010 with Keppel. The unit will now mobilise to the Middle East and undergo shipyard modifications before beginning its inaugural drilling contract with Saudi Aramco in Saudi Arabia. All three of the AOD jackup rigs are being managed by Seadrill after the rig operator purchased a controlling stake in the company in April 2013.

Seadrill adds two more jackup orders to growing construction program

Seadrill is adding to the company’s already significant newbuild construction program with the announcement that the company have ordered two further ‘high-specification’ jackup rigs to be constructed at the Dalian shipyard in China. The order comes a month after the company placed a similar order at the shipyard, as it looks to capitalise on the increasing global demand for new ‘high-specification’ rigs. Both units are being built to the Friede & Goldman JU-2000E design at a cost of US$230m apiece, with the deliveries due in Q2 and Q3 2016. The deal means that Seadrill now have ten jackups currently on order at the yard, with two due for delivery in 2013, five in 2015 and three in 2016.

'Sevan Louisiana' rig delivered from Cosco shipyard in China

The ‘Sevan Louisiana’ drilling rig has been successfully delivered to its drilling manager Sevan Drilling today by the Cosco Quidong Shipyard in China. The ‘Sevan Louisiana’ which was ordered by Sevan back in 2011, will now begin its mobilisation to the USA where the unit has been contracted for a three year drilling contract by LLOG. The unit was built to Sevan Drilling’s cylindrical deep water drilling rig design and is expected to enter the shipyard once it reaches the USA to undergo a number of new equipment installations before beginning operations with LLOG towards the end of Q1 2014. The unit is Sevan’s third drilling rig built to the drilling manager’s unique design, with a fourth unit set to be delivered in mid-2014.

Seadrill agrees to purchase 'Prospector 3' jackup

Seadrill Limited has entered into an agreement with Prospector Offshore Drilling to purchase the company’s currently under construction ‘Prospector 3’ jackup rig. Seadrill has agreed to pay US$235 million for the Friede & Goldman JU-2000E designed drilling unit, which is due for delivery Dalian Shipbuilding Industry Offshore (DSIC) in Q1 2014. In order to be complete the deal requires the approval of DSIC and prospector has set a closing date of the 28th November 2013 for completion of the deal. The sale of the ‘Prospector 3’ is the third sale of an under construction jackup rig agreed by Prospector Offshore in the past year. The company previously sold the ‘Prospector 2’ and ‘Prospector 4’ units to Perforadora Mexico (PEMSA) in December 2012 and February 2013 respectively.

Seadrill begins discussions with Pemex on US$1.8 billion worth of jackup contracts

Seadrill Ltd (Seadrill) has entered into a Heads of Agreement with Pemex with regards to the possible contracting of 5 jackup rigs by the Mexican oil and gas operator beginning in the first half of 2014. The agreement includes Seadrill’s ‘West Defender’, ‘West Intrepid’, ‘West Courageous’, ‘West Oberon’ and ‘Prospector 3’ jackup rigs, with potential revenue from the contract expected to exceed US$1.8 billion. The total number of contracts awarded would exceed 30 years in total and would allow Pemex to secure a number of new assets for long term contracts as the operator looks to boost its production rates.

Statoil set to use 'West Hercules' semisub to drill PL 532 wildcat well

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 7220/4-1, cf. Section 8 of the Resource Management Regulations. Well 7220/4-1 will be drilled from the West Hercules drilling facility at position 72 35` 19,60" north and 20 14´ 06,30" east. The drilling programme for well 7220/4-1 concerns drilling of a wildcat well in production licence 532. Statoil Petroleum AS is the operator with an ownership interest of 50 per cent. The other licensees are Eni Norge AS with 30 per cent and Petoro AS with 20 per cent. The production licence consists of blocks 7219/9, 7220/4, 7220/5, 7220/7 and 7220/8. The licence was awarded in the 20th licencing round in 2009. Wildcat well 7220/4-1 is the sixth exploration well in production licence 532. The permit is contingent upon the operator securing the other permits and consents required by the authorities prior to starting drilling activity.

Statoil targets new wildcat well in PL 608

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for wellbore 7219/8-2, cf. Section 8 of the Resource Management Regulations. The 7219/8-2 wellbore will be drilled from the West Hercules drilling facility at position 72°19` 17.33" N and 19°35´ 20.61" E. The drilling program for wellbore 7219/8-2 relates to drilling of a wildcat well in production licence 608. Statoil Petroleum AS is the operator with an ownership interest of 50 per cent and the other licensees are Eni Norge AS with 30 per cent and Petoro AS with 20 per cent. The production licence consists of block 7219/8. The production licence was awarded in the 21st licensing round in 2011. Wildcat well 7219/8-2 is the first exploration well in production licence 608. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activities.

'West Hercules' strikes oil at Skavl prospect for Statoil in Norway

Statoil Petroleum AS, operator of production licence 532, is in the process of completing the drilling of wildcat well 7220/7-2 S. The well was drilled about five km south of the 7220/8-1 Johan Castberg discovery in the Barents Sea and about 240 km northwest of Hammerfest. The primary exploration target for the well was to prove petroleum in reservoir rocks from the Late Triassic Age (the Fruholmen formation). The secondary exploration target was to prove petroleum in reservoir rocks from the Early Jurassic (the Tubåen formation). The well encountered a gross oil column of about 133 metres in the Fruholmen formation, with poorer than expected reservoir quality. In the Tubåen formation, the well encountered a gross gas column of about 22 metres and a gross oil column of about 23 metres, with good reservoir quality as expected. Preliminary estimates indicate that the discovery is between three and eight million standard cubic metres (Sm3) of recoverable oil equivalents. Further delimitation of the discovery will be considered. The well was not formation-tested, but extensive data acquisition and sampling have been carried out. This is the fifth exploration well in production licence 532. The licence was awarded in the 20th licensing round in 2009. The well was drilled to a vertical depth of 1700 metres below the sea surface, and was terminated in the Snadd formation from the Middle to Late Triassic. The water depth is 349 metres. The well will now be permanently plugged and abandoned. Well 7220/7-2 S was drilled by the West Hercules drilling facility, which will subsequently drill wildcat well 7220/4-1 on another prospect in the same production licence.

'West Hercules' to drill 7220/5-2 wildcat in Barents Sea for Statoil

The Norwegian Petroleum Directorate (NPD) has granted Statoil Petroleum AS a drilling permit for wellbore 7220/5-2, cf. Section 8 of the Resource Management Regulations. Well 7220/5-2 will be drilled from the West Hercules drilling facility at position 72° 33' 40.29" north and 20° 23' 54.84" east. The drilling program for well 7220/5-2 relates to drilling of a wildcat well in production licence 532. Statoil Petroleum AS is the operator with an ownership interest of 50 per cent. The other licensees are Eni Norge AS with 30 per cent and Petoro AS with 20 per cent. The production licence consists of blocks 7219/9, 7220/4, 7220/5, 7220/7 and 7220/8. The production licence was awarded in the 20th licensing round in 2009. Wildcat well 7220/5-2 is the fourth exploration well in production licence 532. The permit is contingent upon the operator securing all other permits and consents required by other authorities before commencing drilling activities.

Statoil makes gas discovery with drilling of Iskrystall prospect in Norway

Statoil Petroleum AS, operator of production licence 608, is about to complete the drilling of wildcat well 7219/8-2. The well proved gas. The well was drilled about 30 kilometres southwest of 7220/8-1 Johan Castberg in the Barents Sea and about 240 kilometres north of Hammerfest. The objective of the well was to prove petroleum in Middle and Early Jurassic reservoir rocks (Stø, Nordmela and Tubåen formations). The well encountered a gross gas column of about 200 metres in the Stø and Nordmela formations, with poorer reservoir quality than expected in both formations at the well position. Preliminary calculations of the size of the discovery are between one and four billion standard cubic metres (Sm3) of recoverable gas. Further delineation of the discovery will be considered. The well was not formation tested, but extensive data acquisition and sampling have been carried out. This is the first exploration well in production licence 608. The licence was awarded in the 21st licensing round in 2011. The well was drilled to a vertical depth of 3382 metres below the sea surface, and was terminated in the Fruholmen formation in the Late Triassic. Water depth is 344 metres. The well will now be permanently plugged and abandoned. Well 7219/8-2 was drilled by the West Hercules drilling facility which will now proceed to production licence 532 in the Barents Sea to drill wildcat well 7220/7-2 S, where Statoil Petroleum AS is the operator.

LUNDIN PETROLEUM DISCOVERS GAS IN ITS FIRST MALAYSIAN EXPLORATION WELL

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has discovered gas in the Tarap-1 well that was drilled in Block SB303, offshore Sabah, East Malaysia. Tarap-1 was drilled with the Offshore Courageous rig in a water depth of approximately 70 meters. The well was directionally drilled to a measured depth of 2,675 metres. The Tarap discovery is a stratigrahic trap and the well encountered gas in each of the 5 independently sealed stacked Miocene sands targeted. Gross total vertical pay thickness for the sands encountered is approximately 150 metres. An extensive data acquisition program was completed including pressure measurements, sampling and a mini flow test in selected zones. The data recovered from the well will be analysed further in order to determine a range of resource estimates. Ashley Heppenstall, President and CEO of Lundin Petroleum comments:" This is an encouraging start to the drilling campaign in Malaysia and provides strong support for our strategy in South East Asia of pursuing organic growth and value creation in focused core areas. With a large number of prospects and leads already identified within SB303, I'm confident that we can continue grow our resource base in this area in the coming years. Sabah currently has two gas demand centres located in Kota Kinabalu and Labuan Island that are supplied from existing offshore infrastructure. The addition of a third demand centre with the construction of the Sabah Oil and Gas Terminal at Kimanis and the Sabah-Sarawak gas pipeline gives us a broad range of options to explore for gas monetisation in the area." The rig will now move to drill the Cempulut prospect, also in SB303, the second well in Lundin Petroleum's five well drilling campaign in Malaysia in 2011. Lundin Petroleum holds a 75 percent interest in SB303 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn Bhd with a 25 percent interest.

Lundin Petroleum commences drilling on the Janglau prospect

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has commenced the drilling of the Janglau prospect located in Block PM308A, offshore the east coast of Peninsular Malaysia. The Janglau-1 exploration well will test the hydrocarbon potential of Eocene to Oligocene alluvial sands overlying a Pre-Tertiary high that also forms a second objective of the well.The Janglau prospect is located to the north-east of the PM308A block, 7 km to the east of the Rhu oil discovery made in 1991. The planned total depth is 3,950 meters subsea and the well will be drilled using the jack-up drilling rig Offshore Courageous. The well is expected to take approximately 45 days. Lundin Petroleum operates and holds 35 percent interest in PM308A through its wholly owned subsidiary Lundin Malaysia BV. Partners in PM308A are JX Nippon Oil & Gas Exploration (Peninsular Malaysia) Limited with 40 percent interest and PETRONAS Carigali Sdn. Bhd. with 25 percent. Lundin Malaysia BV operates 6 Blocks in Malaysia, namely PM308A, PM308B, PM307, SB303, SB307 and SB308.

LUNDIN PETROLEUM COMPLETES OFFSHORE PENINSULA MALAYSIA EXPLORATION WELL

Lundin Petroleum AB (Lundin Petroleum) has completed the Merawan Batu-1 exploration well in Block PM308B, offshore east coast Peninsula Malaysia. The exploration well targeted hydrocarbons in Oligocene aged sands in a faulted anticline in an undrilled area 50 km to the west of the Janglau oil discovery made by Lundin Petroleum in 2011. The objective reservoirs were successfully penetrated but proved to be water-bearing. The well will be plugged and abandoned as a dry hole. The jackup rig West Courageous will now move to drill the Tembakau prospect in Block PM307. Lundin Petroleum holds 75 percent interest in PM308B through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn Bhd with 25 percent interest. Lundin Malaysia BV operates six blocks in Malaysia, namely PM307, PM308A, PM308B, SB303, SB307 & SB308.

LUNDIN PETROLEUM COMMENCES TEMBAKAU EXPLORATION WELL, OFFSHORE PENINSULA MALAYSIA

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has commenced the fourth well in its 2012 Malaysian drilling campaign with the spud of Tembakau-1 exploration well in PM307 Block, offshore east coast Peninsula Malaysia. The well will target hydrocarbons in Oligocene and Miocene aged sands in a low-relief structure 50 km to the northwest of the Bertam-2 oil discovery made by Lundin Petroleum in 2011. Tembakau-1 is a vertical well to be drilled by the jackup rig West Courageous to a depth of 1,650 metres in approximately 80 metres water depth. The drilling of the well is expected to take two to three weeks. Lundin Petroleum holds 75 percent interest in PM307 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn Bhd with 25 percent interest. Lundin Malaysia BV operates six blocks in Malaysia, namely PM307, PM308A, PM308B, SB303, SB307 & SB308.

Seadrill secures multiple jackup rig contracts in Mexico

Following on from Seadrill Limited's ("Seadrill") third quarter earnings report on November 25, 2013, which announced a Heads of Agreement between Pemex Exploracion y Produccion ("Pemex"), Mexico's national oil company and Seadrill. Seadrill is pleased to announce that the final drilling contracts for the jack-up drilling units West Oberon, West Intrepid, West Defender and West Courageous are now executed. The fifth contract for the recently acquired jack-up drilling unit, Prospector 3, renamed West Titania, is being processed for approval by Pemex and finalization is expected to take place second quarter 2014. Each contract is for a firm term of approximately 6 years and total revenue potential from the five contracts exceeds US$1.8 billion. Additionally, Seadrill is pleased to announce the establishment of SeaMex Ltd. (SeaMex), a 50/50 Joint Venture with an investment fund controlled by Fintech Advisory Inc. ("Fintech"). Fintech is a private investment manager founded in 1989 that has a strong investment record and operation in Latin American countries. SeaMex has been formed for the purpose of owning and managing the jack-up drilling units working for Pemex as well as to develop and pursue further opportunities in Mexico and other Latin American countries. The gross proceeds for the sale of 50% of the five rigs to our partner is expected to be around US$488 million and will result in a gain recordable in the first half of 2014. Per Wullf, Seadrill CEO commented, "This opportunity to expand our relationship with Pemex was partly developed on the back of Seadrill's successful operations with our ultra-deepwater semi-submersible West Pegasus in Mexico. The long term nature of these contracts and the establishment of SeaMex, will create economies of scale in the region. Seadrill sees recent developments in Mexico such as new petroleum legislation, Pemex' expansion plans and recent large deepwater discoveries as supportive to the great opportunity to expand business within the country. By using the Joint Venture to build up a strong local independent organization with close proximity to our customer, strong focus on education, and a high degree of local content, we expect to be able to create an efficient, high quality, and more cost effective organization. Over time, this will position Seadrill better than a centrally driven organization in what we see as a very attractive market. At the same time, a strong focus on localization benefits the Mexican labor market, the Mexican society, and our clients."

'West Hercules' semisub receives permission to drill on production licence 532

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for wellbore 7220/7-3 S, cf. Section 8 of the Resource Management Regulations. Wellbore 7220/7-3 S will be drilled from the West Hercules drilling facility in position 72 24’ 08,73” N and 20 08’ 02,65” E. The drilling programme for wellbore 7220/7-3 S concerns drilling of a wildcat well in production licence 532. Statoil Petroleum AS is the operator with a 50% ownership interest and the other licensees are Eni Norge AS with 30% and Petoro AS with 20%. The production licence consists of blocks 7219/9, 7220/4, 7220/5, 7220/7 and 7220/8, and was awarded in the 20th licensing round in 2009. Wildcat well 7220/7-3 S is the seventh exploration well in production licence 532. The drilling permit is contingent on the operator securing all other permits and consents required by other authorities before the drilling activity starts.

'West Hercules' drills new gas discovery in PL 532

Statoil Petroleum AS, the operator of production licence 532, is in the process of completing the drilling of wildcat well 7220/4-1. The well has been drilled about 11 kilometres northwest of the 7220/8-1 Johan Castberg discovery in the Barents Sea and about 247 kilometres northwest of Hammerfest. The well’s primary exploration target was to prove petroleum in reservoir rocks from the Middle and Early Jurassic (Stø, Nordmela and Tubåen formations). The secondary exploration target was to prove petroleum in reservoir rocks from the Late Triassic (Snadd formation). The well encountered a gross gas column of about 130 metres in the Stø and Nordmela formations, with poorer reservoir quality than expected. In the Snadd formation, the well encountered an approx. 45-metre tall gross gas column. Preliminary calculations indicate that the discovery totals between two and four billion standard cubic metres (Sm3) of recoverable gas. The well was not formation tested, but extensive data collection and sampling have been carried out. This is the sixth exploration well in production licence 532. The licence was awarded in the 20th licencing round in 2009. The well was drilled to a vertical depth of 3209 metres below the sea surface, and was terminated in the Snadd formation from the Middle to Late Triassic. Water depth is 403 metres. The well will now be permanently plugged and abandoned. Well 7220/4-1 was drilled by the West Hercules drilling facility, which will now move on to drill wildcat well 7220/7-3 S on another prospect in the same production licence.

Seadrill secures multiple new jackup contracts

Seadrill Ltd (Seadrill) has secured new contracts for a number of its operational jackup rigs, including the ‘West Tucana’, ‘West Telesto’, ‘West Ariel’ and ‘West Prospero’. Alongside these four new contracts, the company also secured an extension to the ‘West Mischief’ jackup rigs existing contract. The ’West Tucana’ has been contracted for work in Angola with Cabinda Gulf Oil Company Limited (CABGOC) – Chevron’s wholly owned operating unit in the country. The contract is for a firm 24 month period and is valued at US$168 million, beginning in late November 2014. The ‘West Telesto’ has been contracted to drill two wells for Origin Energy Ltd in Australia. The contract is expected to be for 51 days per well, plus two option wells that can be exercised. The unit is expected to begin operations in Q4 2014, following the completion of its existing contract in Vietnam. The ‘West Ariel’ has been contracted by Eni Congo SA, for drilling operations in the Republic of Congo. The unit which has just finished a contract with VietsovPetro in Vietnam will enter a shipyard in Vietnam before it mobilises to begin the newly awarded contract in late April/early May 2014. The contract is for a firm period of 12 months, with an additional 12 month option and is valued at US$89 million. The ‘West Prospero’ has been contracted to drill a single well for JVPC in Vietnam. The contract is expected to commence in April 2014, following on from the completion of its existing contract and is valued at US$6.5 million. Seadrill estimates that it will take the ‘West Prospero’ 40 days to complete the well.

'Sevan Louisiana' delivered by Fairmount Sherpa

Fairmount Marine’s tug the Fairmount Sherpa has towed the offshore semisubmersible drilling rig ‘Sevan Louisiana’ safely from Singapore to Curaçao. During the 11,500 miles voyage via Cape of Good Hope, stops were made in Port Louis (Mauritius), Walvis Bay (Namibia) and Port of Spain (Trinidad) to take bunkers and for crew changes. The’ Sevan Louisiana’ is a so called Ultra Deep Water rig (UDW), built in 2013 at the Cosco shipyard in Nantong, China, for UK-based Seadrill Ltd. The self-propelled rig, equipped with eight thrusters, can accommodate up to 150 crew members. After arrival in Curaçao the Fairmount Sherpa performed multiple cargo runs for the ‘Sevan Louisiana’. The rig will leave Curaçao on her own thrusters to begin a three year contract with LLOG in the US Gulf of Mexico.

Statoil makes discovery with new Barents Sea well

Statoil Petroleum AS, operator of production licence 532, has completed the drilling of wildcat well 7220/7-3 S. The well has been drilled in the Barents Sea, about 15 kilometres southwest of the 7220/8-1 Johan Castberg discovery and 230 kilometres northwest of Hammerfest. The well's primary exploration target was to prove petroleum in reservoir rocks from the Middle and Early Jurassic Age (the Stø and Nordmela formations). The secondary exploration target was to prove petroleum in reservoir rocks from the Late Triassic Age (the Fruholmen formation). The well encountered a 68-metre gross gas column in the Stø formation and an 86-metre gross oil column in the Stø and Nordmela formations. The reservoir quality in the Stø formation is very good. The reservoir quality in the Nordmela formation is variable, but about half of the oil zone was encountered in sandstone with very good reservoir quality. The Fruholmen formation has poor reservoir properties, and is aquiferous. Preliminary calculations of the size of the discovery are between seven and ten million standard cubic metres (Sm3) of recoverable oil equivalents. The well was not formation tested, but extensive data acquisition and sampling have been carried out. The discovery will be considered for tie-in to 7220/8-1 Johan Castberg. This is the seventh exploration well in production licence 532. The license was awarded in the 20th licensing round in 2009. The well was drilled to a vertical depth of 2029 metres below the sea surface and was terminated in the Fruholmen formation from the Late Triassic. Water depth at the site is 345 metres. The well will now be permanently plugged and abandoned. Well 7220/7-3 S was drilled by the West Hercules drilling facility, which will move on to assignments outside the Norwegian shelf.

Farmount Marine Towed Sevan Louisiana to Curacao

Tug Fairmount Sherpa has towed rig Sevan Louisiana safely from Singapore to Curaçao. During the 11,500 miles voyage via Cape of Good Hope, stops were made in Port Louis (Mauritius), Walvis Bay (Namibia) and Port of Spain (Trinidad) to take bunkers and for crew changes. After arrival in Curaçao the Fairmount Sherpa performed multiple cargo runs for the Sevan Louisiana. The rig will leave Curaçao on her own thrusters for her next job in the Gulf of Mexico.

Statoil Awards Contract to CHC Helicopters Canada Inc. to Provide Offshore Transportation in North Atlantic

Norway-based oil-and-gas company Statoil has awarded CHC Helicopters Canada Inc. a contract to provide vital helicopter transportation to Statoil’s new exploration rig in the Atlantic Ocean, off the coast of Newfoundland. The 18-month contract calls for CHC Canada to operate two Sikorsky S-92 aircraft on behalf of Statoil. The helicopters will fly between their home base in St. John’s, Newfoundland, where CHC Canada is establishing a local presence, and Statoil’s West Hercules rig. The service is anticipated to begin in the fall of 2014. Statoil and CHC Helicopter, a service provider to CHC Canada, have extensive experience working together to assure safe operations in the North Sea – knowledge that CHC Canada will apply as it meets Statoil’s requirements off Newfoundland, where weather and sea conditions are similar.

Sevan Drilling release operational update for 'Sevan Louisiana'

Sevan Drilling (Sevan) has announced that on the 13th May 2014 the company received the USD32.5 million mobilisation fee associated with the ‘Sevan Louisiana’. The unit was mobilised to Curacao by Fairmount Marine on board the Fairmount Sherpa vessel, after which it mobilised to the drilling location in the USA using its own thrusters. The ‘Sevan Louisiana’ is now continuing with acceptance testing and is expected to begin its contract with LLOG by the end of May 2014. The unit is contracted to LLOG for a firm three years, with the contract valued at a total of USD585.5 million.

Keppel AmFELS is on course to a timely delivery of its first Scorpion jackup rig

Keppel AmFELS Inc., the US wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M) is expected to deliver the first of its five jackup rigs on time and within budget for Scorpion Offshore Ltd. Keppel AmFELS successfully launched the premium rig Offshore Courageous on November 4, 2006, which marked the completion of the hull works, a major milestone in its construction of the jackup. Mr Jon Cole, CEO of Scorpion Offshore, said, “The launch of Offshore Courageous is highly significant in the development of Scorpion Offshore. Thanks to the efforts of the entire Scorpion team, particularly our Brownsville construction office, as well as our shipyard, Keppel AmFELS, and our major suppliers, LeTourneau, National Oilwell Varco, Cameron and Lewco. The Offshore Courageous will now undergo final outfitting, installation of the drilling equipment and remaining leg sections and commissioning prior to the rig’s delivery in May 2007.

Keppel AmFELS is on track to deliver first Scorpion jackup rig

Keppel AmFELS Inc., the US wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), is on course to a timely delivery of Scorpion Offshore Ltd.’s first jackup drilling rig at the end of May 2007. The ultra premium drilling rig, Offshore Courageous, is the first of five jackups that Keppel AmFELS is constructing for Scorpion Offshore. The other four rigs are Offshore Defender, Offshore Resolute, Offshore Vigilant and Offshore Intrepid. Said Mr Jon Cole, CEO of Scorpion Offshore, “The on-time delivery of Offshore Courageous is crucial to Scorpion Offshore’s goal of providing superior solutions to our customers in the ultra-premium jackup market.”

Keppel FELS delivers its KFELS B Class jackup rig to Seadrill ahead of time

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a KFELS B Class design jackup drilling rig to Seadrill Management AS (Seadrill), within budget and ahead of time. This rig was named West Prospero by Lady Sponsor Mrs Jocelyn Pedregosa Shearer, wife of Mr Ian Shearer, Senior Vice President for Jackup Units of Seadrill on 30 June 2007. Mr Liam Mallon, Chairman and Lead Country Manager of ExxonMobil Malaysia, graced the ceremony as Guest-of-Honour. West Prospero is the second KFELS B Class rig that Keppel FELS has delivered to Seadrill. The first rig, West Ceres (ex-Seadrill 3), was delivered to Seadrill in April 2006. Keppel FELS is building two more KFELS B Class jackup rigs for Seadrill. Construction of the other two rigs is progressing according to schedule. They are due for delivery later this year and mid-2008 respectively.

Keppel AmFELS repeats on track delivery for Scorpion’s second rig

Keppel AmFELS Inc., the US wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has delivered its second jackup drilling rig for Scorpion Offshore (Scorpion) on time and within budget. The delivery of Offshore Defender comes just five months after Keppel AmFELS completed its first jackup rig for Scorpion earlier this year. A newly established drilling company, Scorpion has contracted Keppel AmFELS to build a fleet of five drilling rigs. Construction of the remaining three is progressing well on track, and the rigs are scheduled for delivery through 2008 to 2009.

Keppel FELS delivers KFELS B Class rig to SeaDrill three days ahead of time

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M), has completed its fourth KFELS B class jackup rig for SeaDrill Limited (SeaDrill) within budget and three days ahead of schedule. This is Keppel O&M’s sixth jackup rig delivery this year, with five from Keppel FELS and one from Keppel AmFELS. In keeping with the naming tradition for all of SeaDrill’s other drilling units, this rig has been christened with the name of a celestial body, West Ariel. This KFELS B Class rig will have the capability of operating in water depths of up to 400 feet, has a drilling depth of 30,000 feet and can accommodate 112 men.

Keppel completes series of five Scorpion jackups on time

Keppel AmFELS Inc., a wholly-owned subsidiary of Keppel Offshore & Marine Limited (Keppel O&M) in the US Gulf of Mexico, has delivered the jackup drilling rig, Offshore Intrepid, to Scorpion Intrepid Ltd. a subsidiary of Scorpion Offshore Ltd. (Scorpion) on time. With this delivery, Keppel AmFELS has completed the series of five LeTourneau Super 116 jackup rigs commissioned by Scorpion in 2005 without delay. Offshore Intrepid was named by Mrs. Drucie Cole, spouse of Mr. Jon Cole, Scorpion’s President & CEO, at the Keppel AmFELS yard on 24 January 2009. This rig has been chartered by Odfjell Drilling Services to operate in the Arabian Gulf for 41 months, beginning 2Q2009.

Keppel delivers Seadrill’s 5th KFELS B CLASS jackup rig

Keppel FELS Limited (Keppel FELS) is on track towards an on-budget and on time delivery of the KFELS B Class jackup rig, West Callisto, to Seadrill Limited (Seadrill) before the end of July 2010. To date, the project has clocked a good safety record of 2.2 million man-hours without incidents. This rig was named at Keppel FELS today by Lady Sponsor Mrs Poespawardhani Priyono, spouse Mr R. Priyono, Chairman of BPMIGAS, Indonesia’s upstream oil and gas supervisory agency. Mr Wong Kok Seng, Executive Director of Keppel FELS, said, “Together, Keppel and Seadrill have been setting the global standard in offshore drilling since 1993. Our win-win partnership has yielded a fleet of 14 exceptional rigs worth US$1.5 billion. “The successful construction of West Callisto is another strong testimony of the teamwork between our companies. Keppel FELS looks forward to continue supporting our valued customer Seadrill with growing its market leadership in premium rigs.” West Callisto is expected to commence development drilling operations in Indonesia under a nine-month contract with Premier Oil, in the third quarter of 2010.

Securing more rig capacity

Statoil has signed a contract with North Atlantic Norway to hire the West Hercules rig which can be used for exploration and production drilling internationally and on the Norwegian continental shelf (NCS). Statoil has signed an agreement with North Atlantic Norway Ltd (Norwegian Branch), a company in the Seadrill group, for hire of the West Hercules rig for use on exploration prospects and production licences. The semi-submersible rig will be deployed to start drilling from Q3 2012. “With its many capabilities, West Hercules will contribute to maintaining a sustainable activity level of exploration, and also to execute on our company’s ambitious exploration strategy in the years to come,” says Tim Dodson, Statoil’s executive vice president for Exploration. “Inclusion of this rig in our portfolio provides the necessary flexibility we are looking for and it supports our earlier communicated strategy of revitalising the NCS with high value barrels and deliver on our exploration programme globally. Acquiring this rig is an important contribution to securing Statoil’s rig capacity.” The daily rate for the rig is USD 490.000. A mobilisation fee of USD 50 million is also payable. The contract is for a fixed four-year period. Statoil has secured a one-year option on the same conditions. ”Statoil’s focus continues to be on bringing more modern and flexible rigs to our portfolio,” says Jon Arnt Jacobsen, Statoil’s chief procurement officer. “West Hercules is the first-available suitable rig which is already in operation. This, together with its advanced capabilities such as deep waters, high pressure/high temperature and completion, has prompted Statoil to act on this opportunity. This modern rig will be complementary to our portfolio and bring us more flexibility. It will be utilised on targeted wells internationally and on the NCS.” West Hercules is a sixth generation, high specification, deep water, semi-submersible drilling unit, built in 2008. It has a high load carrying capacity and an efficient drilling floor layout with improved safety and working environment measures. West Hercules can run parallel drilling operations and is designed with a dynamic positioning system and a water depth capacity up to 3,000 metres. West Hercules is expected to complete a three-year contract for Husky Oil China Ltd for operations off China in May 2012.

Statoil launches ambitious exploration campaign in the Skrugard area

Statoil ASA, together with partners Eni Norge AS and Petoro AS, has established a plan for further exploration drilling in the Skrugard area. The exploration campaign will comprise four new prospects and is scheduled to commence late 2012. The objective is to follow up on the Skrugard and Havis discoveries and to test further upside potential in this area of the Barents Sea, including production licences PL532 and PL608. “We are very satisfied with our recent exploration achievements in the Barents Sea. In less than a year, we have made two substantial oil discoveries in PL532, proving 400-600 million barrels of recoverable oil. We have also drilled a successful appraisal well on Skrugard confirming volume estimates and collecting data for field development planning,” says Knut Harald Nygård, Statoil vice president for exploration in the Skrugard area. “We see good opportunities for further upside in the area, and have identified four new interesting prospects. In some of these we have observed flat spots of the same type as in the Skrugard and Havis discoveries.” The four prospects will be drilled back to back with the West Hercules drilling rig, which will be winterised to meet the weather conditions in the Barents Sea. The drilling campaign will start in PL532 with the Nunatak prospect due to be spud in December this year. Then the rig will proceed to the Skavl prospect located in the same licence, and thereafter to the Iskrystall prospect in the neighbouring licence PL608. The fourth prospect to be drilled will be announced at a later stage. Statoil’s ambition is to complete drilling of all four prospects by late spring/early summer 2013. “With the Skrugard and Havis discoveries, we are establishing a new strategic hub in the northernmost part of the Norwegian continental shelf. Proving additional volumes in the area would make the development even more robust,” says Erik Strand Tellefsen, Statoil vice president for Skrugard field development. Statoil is operator for production licences PL532 and PL608 with an ownership share of 50% in each. The licence partners in both licences are Eni Norge AS (30%) and Petoro AS (20%).

'Sevan Louisiana' goes to work for LLOG

Following the press release on 16th May, 2014 Sevan Drilling (Sevan) has announced that the company’s ‘Sevan Louisiana’ drilling unit has completed acceptance testing and commenced its 1,095 day contract with LLOG in the US Gulf of Mexico. The ‘Sevan Louisiana’ began the contract on the on 28th May, 2014 and will be working for the operator until 2017, with a dayrate of USD505k associated. The ‘Sevan Louisiana’ is Sevan’s third operational unit, with the company set to receive its fourth unit later in 2014, although it has not be confirmed if Sevan will take delivery of the ‘Sevan Developer’ unless they are able to confirm a firm contract for the unit.

Giant rig West Elara arrives in Ølensvåg

One of the world's largest jack-up rigs has arrived at Westcon Yard in Ølen. New rig West Elara arrived in the fjord last Wednesday loaded on cargo vessel Mighty Servant 1. It is planned that the rig will be at the yard for six weeks, informed Project Manager Rolf Eikemo. The new build has taken two months in transit from Singapore to Ølen. The rig arrived as planned last Wednesday, and by Sunday was ready for work to begin. The rig is owned by North Atlantic Drilling, that is a company which Seadrill have a 75% ownership. "Seadrill is a company that returns to the yard time and again, and with whom we have a long and close working relationship", says Rolf Eikemo. The main tasks for Westcon Yard will be completion and preparation for working in the North Sea. West Elara enters into a contact with Statoil at the end of November.

Total contracts drillship to perform Egina drilling

Seadrill Limited (Seadrill) has secured a contract with Total Upstream Nigeria Ltd for employment of the newbuild ultra-deepwater drillship ‘West Jupiter’, in support of the EGINA ultra-deep offshore project in Nigeria. The contract is for a firm period of five years and has a total revenue potential for the primary contract term of approximately USD1.1 billion inclusive of mobilization. Seadrill's total consolidated backlog stands at approximately USD20 billion with the execution of this contract. The ‘West Jupiter’ is one of eight 6th generation drillships currently under construction for Seadrill and is expected to be delivered from the Samsung Heavy Industries shipyard in Geoje, South Korea in August 2014. The rig will be outfitted to work in up to 10,000ft of water and is capable of water depths up to 12,000ft and drilling depths up to 37,500ft. Per Wullf, Seadrill CEO commented, "We are very pleased to have been chosen by Total and its partners for this important project. This contract provides an opportunity to deepen our relationship with a key customer and strategically increase our rig fleet in Nigeria, adding the West Jupiter alongside the West Capella which has been operating in the Usan field Offshore Nigeria since 2008. Seadrill takes pride in continuing to build its presence in the Nigerian oil & gas industry".

'West Linus' unit compliant in Norway

North Atlantic Drilling Limited’s (NADL) jack-up rig ‘West Linus’ has received the Petroleum Safety Authority Norway's Acknowledgement of Compliance (AoC). ‘West Linus’ and relevant parts of NADL Management AS’s organisation and management systems are considered to be in compliance with relevant regulatory requirements for petroleum activities. The validity of this Acknowledgement of Compliance assumes that NADL ensures that the facility and relevant parts of the company’s organisation and management systems are maintained, so to fulfil terms and conditions set out in the PSA’s decision.

Lundin spuds Tembakau appraisal using 'West Prospero' jackup

Lundin Petroleum AB (Lundin) is pleased to announce that it has commenced the first well in its 2014 Malaysian drilling campaign with the spud of the Tembakau-2 appraisal well in Block PM307, offshore Malaysia. The well will target stacked gas reservoirs in Miocene aged sands in a large, low-relief, structure discovered by Lundin’s Tembakau-1 in late 2012. The discovery well penetrated 60 metres of net gas sands in five high quality sand intervals between 800 metres and 1,250 metres subsea. The appraisal well will core the main reservoir section and is expected to confirm the extent and quality of the gas reservoirs 3.7 kilometres to the south of Tembakau-1. Deliverability will be measured through production testing. The objective of the well is to confirm the current gross contingent resource estimate of gas as well as to test upside resource potential within the structure and to provide reservoir information for development planning. Tembakau-2 is a vertical well to be drilled by the jackup rig ‘West Prospero’ to a depth of 1,400 metres in approximately 70 metres water depth. The drilling of the well, including testing, is expected to take approximately 60 days. Lundin holds a 75 percent interest in PM307 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn. Bhd. with 25 percent interest. Lundin Malaysia BV operates seven blocks in Malaysia, namely PM307, PM308A, PM308B, PM319, SB303and SB307/308

Statoil hits dust at Brugdan II

Drilling of the Brugdan II Re-Entry well in licence 006 offshore the Faroe Islands has concluded. The well will now be plugged and abandoned. It was drilled to 4,542 metres and resulted in a dry well. The well is located 130 kilometres offshore the Faroe Islands and was respudded in May 2014. It was drilled using the ‘West Hercules’ semi-submersible rig in a water depth of 450 metres. This is the second exploration well that has been drilled in licence 006 which covers an area of approximately 579 square kilometres. Statoil has been in the Faroe Islands since 2000 and holds a significant acreage position with four operated licences. The licences are basalt-covered and target multiple and diverse plays. Statoil's position in the Faroe Islands is in line with the company's exploration strategy of early access at scale and establishing a leading position in frontier areas. ‘West Hercules’ will now move on to licence 008 in the Faroe Islands, where Statoil also is operator, to drill the Sula/Stelkur well.

Seadrill refinances three ultra-deepwater drillships

Hamilton, Bermuda, July 10, 2014 - Seadrill Limited ("Seadrill" or the "Company") has received commitments from 17 banks for a US$1.35 billion credit facility with a 5 year term and 10 year amortization profile to refinance the credit facilities secured by the West Pegasus, West Gemini, and West Orion. The transaction was initially launched as a US$900 million facility secured by two ultra-deepwater units. However, due to strong interest from the Company's banking group, the facility was upsized to US$1.35 billion by including one additional ultra-deepwater unit in the collateral package. The new loan will be priced at a margin of Libor plus 2% and was substantially oversubscribed, demonstrating the strength of Seadrill's credit in the banking market. This refinancing will provide Seadrill with US$350 million in additional cash. By concluding this transaction the Company will be left with one ultra-deepwater and four jack-up units to be refinanced in 2015 and one ultra-deepwater and four jack-up units in 2016, totalling US$1.2 billion to be refinanced. The Seadrill Group has gone to great lengths to diversify its sources of funding through opportunistic capital raises in the secured ECA, secured bank, unsecured bond, convertible bond, term loan B, and MLP markets. Having access to numerous markets reduces refinancing risk and leads to decreased cost of capital that ultimately maximizes value creation for shareholders. Seadrill's diversified funding strategy has resulted in the Company being in the best possible financial situation in the Company's history, with significant financial flexibility to support the dividend and prepared to act on potentially attractive acquisition opportunities created by the temporary weakness in the market. The Board is pleased with the significant progress made on the financing front over the last twelve months and wants to give credit to management for hard work and solid execution.

Lundin completes appraisal drilling in Malaysia

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that it has completed the first well in its 2014 Malaysian drilling campaign with the successful drilling and testing of Tembakau-2 appraisal well in Block PM307, offshore Malaysia. Tembakau-2 was drilled by the jackup rig ‘West Prospero’ to a depth of 1,450 metres in 68 metres water depth. The well-targeted stacked gas reservoirs in Miocene aged sands in a large, low-relief, structure discovered by Lundin Petroleum’s Tembakau-1 well in late 2012. Tembakau-2 is 3.7 kilometres to the south of the discovery well and penetrated 22 metres of gross gas sands in four sand intervals between 900 metres and 1300 metres subsea. The main two reservoirs penetrated were fully cored and the well was comprehensively logged. The reservoir deliverability was measured through production testing. The “I20” sand produced at stabilised flow rate of 15.8 million standard cubic feet per day of gas over a 8 hour period on 64/64” choke and the “I10” sand produced at stabilised flow rate of 15.9 million standard cubic feet per day of gas over a 8 hour period on 72/64” choke. Each perforated interval was 3 metres. The gas produced is dry with approximately 0.5% CO2. Multiple samples were obtained for further laboratory analysis. The data gathered will be analysed and integrated with 3D seismic information to update the current gross contingent resource estimate of gas and to provide reservoir information for conceptual development studies. Ashley Heppenstall, President and CEO, commented; “The appraisal drilling results from Tembakau are positive. We are incorporating the results of the well into an updated resource estimate. We will now move forward in reviewing conceptual development options and I am hopeful that this will lead to another commercial development project in Malaysia.” The well has been plugged and abandoned and the ‘West Prospero’ rig has moved to the Bertam oil field well head platform location, also in PM307, to commence development drilling. Lundin Petroleum holds a 75 percent interest in PM307 through its subsidiary Lundin Malaysia BV. Lundin Malaysia BV's partner is PETRONAS Carigali Sdn. Bhd. with 25 percent interest. Lundin Malaysia BV operates seven blocks in Malaysia, namely PM307, PM308A, PM308B, PM319, SB303and SB307/308.

'West Linus' lined up to complete wells on Ekofisk

ConocoPhillips Skandinavia AS (COPSAS) has received consent to use the ‘West Linus’ jack-up drilling facility for drilling and completion of wells at Ekofisk 2/4-ZZ. The Ekofisk field was discovered in 1969 and is the oldest of the oil and gas fields in production on the Norwegian Continental Shelf. The field is situated around 280 km south-west of Stavanger. Water depth is around 73 metres. West Linus received Acknowledgement of Compliance on 25 May 2014.

ExxonMobil contracts newbuild drillship 'West Saturn' for ERHA North Phase 2

Seadrill Limited (Seadrill), in cooperation with indigenous partner Field Offshore Design Engineering Nigeria Limited has secured a contract with Esso Exploration and Production Nigeria Limited, an ExxonMobil subsidiary, for employment of the newbuild ultra-deepwater drillship ‘West Saturn’, in support of the ERHA North Phase 2 project in Nigeria. The contract is for a firm period of two years plus a one year option and has a total revenue potential for Seadrill and Field Offshore Design Engineering Nigeria Limited for the primary contract term of approximately USD497 million, inclusive of mobilization. The ‘West Saturn’ is currently under construction at Samsung Heavy Industries in Geoje, South Korea with expected delivery in September 2014 and marks the sixth Seadrill unit to commence operation in the last 12 months. The unit will initially be outfitted to work in up to 10,000 ft. of water and is capable of handling two BOP's, operating in up to 12,000 ft. of water and drilling depths up to 40,000 ft.