CIMC Raffles secures newbuild harsh environment semisub contract

Yantai CIMC Raffles Offshore Limited (CIMC Raffles) has announced that the shipyard has been awarded a newbuild contract for a harsh environment ice class semisub drilling unit. The new drilling rig will be built to Global Maritime’s GM4-D rig design as it targets securing a contract in the North, Arctic or Barents Sea. The rig has been ordered by Beacon Holdings Group Ltd (Beacon) and construction of the unit will be managed by North Sea Rigs AS, the same company that placed the existing GM4-D rig order at CIMC Raffles for the ‘North Dragon’ semisub. Beacon’s semisub will be named the ‘Beacon Atlantic’ and is expected to be delivered by the shipyard in Q4 2016.

Gas discovery block 1 offshore Tanzania

Ophir Energy plc (Ophir), the Africa-focused upstream oil and gas company, is pleased to announce that a gas discovery has been made in the Chaza-1 exploration well offshore Tanzania. This is the first gas discovery in Block 1 but the third consecutive discovery made in this drilling campaign following on from the Chewa and Pweza discoveries made in Block 4. The Chaza-1 well was operated by Ophir (40%) on behalf of a joint venture with BG International (BG) (60%). The well is located approximately 18km from the coastline in 952m of water. The Chaza-1 well was drilled to a total depth of 4,895m sub-sea. The well encountered a high quality gas bearing reservoir of which is associated with a distinctive seismic anomaly. Chaza-1 is the third of a three-well sequence which forms part of an Initial Work Programme across Blocks 1, 3 and 4. The Deepsea Stavanger will now move back to the Chewa location in Block 4 to side-track and appraise the earlier announced Chewa-1 discovery and deepen the well to test older reservoir objectives. The Ophir/BG Joint Venture has interests in Blocks 1, 3 and 4 offshore southern Tanzania. These blocks cover more than 27,000km2 of the Mafia Basin and northern portion of the Ruvuma Basin in water depths ranging from approximately 100m to greater than 3,000m. The Ophir/BG Joint Venture is currently completing the acquisition of approximately 5,000km2 of additional 3D seismic data across all three blocks.

Second gas discovery block 4 offshore Tanzania

Ophir Energy plc ("Ophir"), an Africa-focused upstream oil and gas company, is pleased to announce that a significant gas discovery has been made in the Chewa-1 exploration well. This is the second gas discovery in the Mafia Basin, offshore Tanzania and follows on from the successful Pweza-1 well. The Chewa-1 well is located in Block 4 which is operated by one of Ophir's wholly owned subsidiaries on behalf of a joint venture which consists of itself (40%) and BG International ("BG") (60%). The well is located approximately 80km from the coastline in 1,315m of water. The Ophir/BG Joint Venture has interests in Blocks 1, 3 and 4 offshore southern Tanzania. These blocks cover more than 27,000km2 of the Mafia Basin and northern portion of the Ruvuma Basin, in water depths ranging from approximately 100m to greater than 3,000m. Chewa-1 is the second of a three-well sequence which forms part of an Initial Work Programme across Blocks 1, 3 and 4. Upon completion of the Initial Work Programme, which also includes the acquisition of 4,000km2 of 3D seismic data, BG has the option to assume operatorship of all three blocks.

Gas discovery Pweza-1 well block 4 offshore Tanzania

Ophir Energy plc ("Ophir") an Africa-focused upstream oil and gas company, is pleased to announce that the Pweza-1 exploration well in the Mafia Basin offshore Tanzania has encountered a thick section of gas-bearing sands. Results from the Pweza-1 well, which has the potential to de-risk other prospects and leads in the basin, are currently being evaluated. The Pweza-1 well is located in Block 4 which is operated by one of Ophir's wholly owned subsidiaries on behalf of a joint venture which consists of itself (40%) and BG International ("BG") (60%). The well is located approximately 85km from the coastline in 1,400m of water. The Ophir/BG group joint venture has interests in Blocks 1, 3 and 4 offshore Tanzania which cover more than 27,000sq km of the Mafia Offshore Basin and northern portion of the Ruvuma Basin, in water depths ranging from approximately 100m to greater than 3,000m. The Ophir/BG joint venture now proposes to drill a further two wells as part of this first ever deepwater drilling campaign in Tanzania.

Odfjell Drilling announces revised delivery date for 'Deepsea Aberdeen'

Following on from the incident involving water ingress in the pontoons in December 2013, the ‘Deepsea Aberdeen’ has been successfully recovered. Construction activities have resumed and are continuing as normal however, due to the incident a revised delivery schedule has been worked out for the unit with delivery now expected to occur in October or November 2014. This revised delivery schedule means that the unit will now not commence its contract with BP in the UK North Sea until during Q1 2015 and has added an additional US$10 million to the construction cost for the rig.

Nautronix to supply positioning system for 'Bollsta Dolphin'

Nautronix has secured an order from Hyundai Heavy Industries (HHI), South Korea to supply a NASNet® DPR (Dynamic Positioning Reference) System which will be used on the newbuild ‘Bollsta Dolphin’ drilling rig. The system provides robust mitigation against many of the risks associated with both acoustic and satellite positioning systems, allowing multiple users to benefit simultaneously from the same array with no risk of interference. NASNet® DPR uses cutting edge acoustic technology combined with a user-friendly interface to provide high speed position updates and stable positioning in water depths up to 4,000m.

'Deepsea Atlantic' resumes drilling activity

Odfjell Drilling's sixth-generation semisubmersible drilling rig, ‘Deepsea Atlantic’, resumed drilling operations for Statoil on the Gullfaks field late evening on 20 April 2014 after an efficient and successful yard stay. The five year special periodic survey and the planned modifications were executed in 25 days, five days ahead of the scheduled 30 days and within budget of US$55 million. The ‘Deepsea Atlantic’ underwent a full five year special periodic survey in addition to the following modifications; change of topdrive, change of two thrusters, change of N-line (a part of the compensation system for BOP/ Riser) and a change of valves under sea level. The total scope of work has been carried out according to the plan and requirements without any injuries to personnel or major incidents.

Lerke well completed

A wildcat drilled by Statoil on the Lerke prospect near its Norne field in the Norwegian Sea failed to encounter hydrocarbons in the main reservoir. However, oil was found in other parts of this formation. Statoil plans to investigate its quantity and production properties over the coming six months. That will establish whether these resources are commercially recoverable, reports Knut Chr Grindstad, exploration vice president for Halten/Nordland. “We’re disappointed by this result,” admits Mr Grindstad, who is based at Statoil’s north Norwegian exploration office in Harstad. “But we still believe that we can develop the other Norne satellites profitably with a subsea development tied back to the main field’s production ship.” He emphasised that Statoil will go ahead with its plans to drill a wildcat on the Gråspett prospect west of Lerke. The latter lies between the Svale and Stær discoveries, which were made in the spring of 2000 and the spring of 2002 respectively. Deepsea Bergen drilled the 6608/10-9 well on Lerke to a total measured depth of 2,400 metres. Statoil has a 40.45 per cent interest in the prospect, with Petoro, Norsk Hydro, Agip and Shell/Enterprise as its partners.

Drilling the Lerke prospect

A wildcat has been spudded by Statoil on the Lerke prospect in the Norne area of the Norwegian Sea on 23 January. Expected to take about two months to complete, this well is being drilled between the Svale and Stær discoveries. These were made in the spring of 2000 and the spring of 2002 respectively. The hope is that Lerke contains oil, reports Roger Inge Johansen, Statoil’s exploration manager for the area. “A possible discovery could be integrated with Svale and Stær in a subsea development tied back to our Norne production ship,” he explains. With a solution of that kind, production could get under way in 2005. Designated 6608/10-9, the well is due to be drilled by Deepsea Bergen to a total measured depth of 2,380 metres.

BP extends 'Deepsea Stavanger' contract in Angola

Odfjell Drilling has announced that the company’s ‘Deepsea Stavanger’ semisub rig has been awarded an extension to its existing contract in Angola with BP. The contract extension is in direct continuation of the existing contract and is for six firm wells, to be drilled over a 13 month period. The contract secures work for the ‘Deepsea Stavanger’ through 2015. The contract extension is estimated to be worth USD210 million and includes two unpriced options for two wells each. The ‘Deepsea Stavanger’ has been operating for BP in Angola since November 2011 and the contract extension means that the unit will have been operating in the country for four straight years upon completion.

Rig secured for Norwegian Sea

A letter of intent worth about NOK 2.35 billion (USD 350 million) for use of the Deepsea Bergen drilling rig in the Halten-Nordland area of the Norwegian Sea has been signed with Odfjell Drilling by Statoil. The rig will be used for development drilling and exploration in the areas near the Heidrun, Norne and Åsgard fields. The agreement is valid for three years. Plans call for Statoil to take over the rig in the second quarter of 2008. The letter of intent is subject to approval by Statoil's partners in the production licences for Heidrun, Norne and Åsgard.

New rig secured

Statoil has today, 13 April, signed an agreement with Odfjell Invest AS for hire of the sixth-generation Deepsea Atlantic rig. The rig will be used for production and exploration drilling at the Statoil-operated North Sea Gullfaks field. Odfjell Invest is building the rig at the Daewoo Shipbuilding and Marine Engineering yard in South Korea. It will be delivered in the first half of 2009. "Consideration towards safeguarding the natural and working environment on the rig has been decisive for this contract award," says Terje Overvik, executive vice president for Exploration & Production Norway (EPN). "The rig will contribute to ensuring safe and effective operations at the Gullfaks field." He adds that the procurement is an important contribution to fulfilling the aggressive production targets Statoil has set for the Tampen area of the North Sea. Anders Opedal, vice president for procurements in the drilling and well technology business unit in Technology and Projects (T&P), is pleased that Statoil has secured essential future rig capacity in a tight market. "With the signing of this contract, Statoil is inviting Odfjell to be part of a renewal of the ageing rig fleet on the Norwegian continental shelf," says Mr Opedal. Statoil has secured flexibility with regard to the length of the contract which runs for four or five years, with an additional two two-year options. Statoil must decide on the final length of contract by July 2008.

Securing rig for production drilling in the Norwegian Sea

Statoil has signed a letter of intent with Odfjell Drilling for hire of the Deepsea Bergen rig to be used on our licences in the Norwegian Sea. The contract value is around USD 380 million. As operator of several licences Statoil has awarded a contract to Odfjell Drilling for use of the Deepsea Bergen rig for production drilling on the Halten Bank. “We are satisfied with the signing of this agreement,” says Ivar Aasheim, senior vice president for the operations north cluster of the Exploration & Production Norway area. “It secures our future capacity in the rig market, thus enabling us to maintain our production targets in the longer term.” The contract period is three years and includes a one-year option following the completion of the drilling programme. The contract states a daily rate of around USD 346,000, based on the current exchange rate. Statoil has an option to further extend the contract period at a reduced rate. The agreement is subject to partner approval. “In our view, the agreement reflects a sustainable price level for this type of rigs,” says Gunn Vik Grønhaug, who is responsible for procuring drilling and well services in Statoil. “This agreement also confirms the good cooperation between Odfjell Drilling and Statoil.” Deepsea Bergen is a semi-submersible drilling rig, which is currently under a three-year contract with Statoil in the same area.

Well incident on Deepsea Atlantic last night

At 03.25 on Thursday morning a well incident was detected on the exploration rig Deepsea Atlantic. The incident was reported to the Petroleum Safety Authority Norway. Statoil will closely examine the incident and is dispatching its own personnel, and personnel from drilling operator Odfjell Drilling, to conduct investigations. The team will also determine the final classification of the incident. The incident led to the crew being mustered on board in accordance with regulations. Normalisation efforts on the rig commenced a half-hour later and the situation was quickly clarified. Work on the well has now been resumed. Deepsea Atlantic is exploring for Statoil close to the Gullfaks South field, where it is about to complete operations in connection with the gas and condensate discovery in well 34/10-53. This constitutes an independent exploration prospect unconnected to the main reservoir on the Gullfaks field. The well has been closed for seven days owing to bad weather conditions on the field. Normal procedures are followed after such an incident to ascertain any possible seepage in the well. When the blow-out preventer (BOP) was opened after the closure and mud circulated, gas was registered in the mud processing unit on the platform. The well control system was then immediately closed down in line with procedures. The gas in the well was circulated in a controlled manner and the second well barrier was thereby re-established. The well was drilled using conventional drilling technology in an area where there are not the same demanding reservoir and pressure conditions as on the main Gullfaks field. Pressure conditions during this drilling operation were in accordance with the calculations made in advance.

Discovery close to Gullfaks

Statoil has found gas and condensate around two kilometres west of the Gullfaks South field in the middle sector of the North Sea. The size of the discovery is estmated at between 19 and 75 million barrels of recoverable oil equivalent. Plans call for tie-back of the discovery to existing infrastructure in the Gullfaks South area. “The discovery by Gullfaks confirms once again that infrastructure-led exploration is important and leads to finds with high profitability that can quickly come on stream,” says Gro Gunleiksrud Haatvedt, senior vice president for exploration on the Norwegian continental shelf (NCS). The discovery was made in the Rimfaks valley where drilling of well 34/10-53 S confirmed a column of around 300 metres in good-quality reservoir rocks. Gas was found in the Brent group while no hydrocarbons were discovered in the Statfjord group. The well was drilled to a vertical depth of 3,847 metres below sea level, and was concluded in the Lower Jurassic rocks of the Statfjord group. Water depth in the area is 136 metres. “We regard the area around Gullfaks South to be prospective and the find confirms our faith in the area,” says Haatvedt. “Even if the volumes are modest compared to the large discoveries previously made on the NCS, discoveries of this type are important in order to maximise the potential on the NCS. They help extend the lifetime of the installations.” The well has not been formation tested, but further data acquisition and sampling are being made to determine the hydrocarbon system and estimate contacts. The well was drilled by the Deepsea Atlantic drilling rig. After completing the data acquisition and permanently plugging the well the rig is to drill a sidetrack well to Opal, which is a prospect in the Middle Jurassic reservoir rocks (Brent group) located west of the Rimfaks valley in production licence 050B. The licensees of PL050 and PL050B are Statoil (operator, 70%) and Petoro (30%).

CIMC Raffles begins construction of 'Beacon Atlantic'

Chinese semi-submersible rig specialist CIMC Raffles (CIMC) has kicked off construction of a deep-water unit destined for operation in Norway’s North Sea and other challenging regions such as the Arctic and Barents Sea. The ‘Beacon Atlantic’, which is being built for Norway’s North Sea Rigs to the GM4-D design, will be capable of operating in water depths of 500 metres with drilling depth up to 8000 metres. Construction started on Wednesday. Classed by classification society DNV GL, the rig is equipped with a DP3 system and drilling package provided by NOV will be built to the Norsok standards, while meeting the requirement set by the Petroleum Safety Authority Norway and the Norwegian Maritime Directorate. The unit, which is the sixth of its kind CIMC will have built for operation in Norway’s North Sea, is scheduled for delivery in 2016. ‘Beacon Atlantic’ is the second GM4-D design semisub contracted by CIMC after the first unit, ‘North Dragon’, which is already being built. North Sea Rigs is managing both rigs on behalf of the owners.

Fred Olsen secures funds for delivery of 'Bollsta Dolphin'

Fred. Olsen Energy ASA (Fred Olsen) has signed a new six year bank credit facility of up to USD2,000 million. The credit facility will be used to repay existing bank loan, fully-finance the delivery of the newbuild ‘Bollsta Dolphin’ semisub rig and for general corporate purposes. The facility is provided by a group of international banks and GIEK/Eksportkreditt; with Nordea, ING, ABN Amro, Danske Bank, DNB, Handelsbanken, SEB and Swedbank as Mandated Lead Arrangers. Fred Olsen is expected to take delivery of the ‘Bollsta Dolphin’ in Q2 2015. Upon delivery the unit will be mobilised to the UK, where it has been contracted by Chevron for a fixed five year term, where it has been earmarked to perform drilling operations on Chevron’s development of the Rosebank field.

'Deepsea Aberdeen' named in South Korea

The naming ceremony for the ‘Deepsea Aberdeen’ semisub was celebrated on 25th June. Mrs Karen Jones representing BP, the lady sponsor of the new ultra deepwater drilling unit bestowed good luck for the rig and its crew. I am grateful for, and value, the attitudes and efforts I have experienced in meetings with DSME and the key contractors at the yard. They have done an enormous effort, states Simen Lieungh, CEO of Odfjell Drilling. The unit will roll out for sea trials from July- August 2014. Odfjell Drilling is expected to take delivery of ‘Deepsea Aberdeen’ in October/ November 2014. From Okpo in South Korea ‘Deepsea Aberdeen’ will sail to Singapore and Mauritius, Cape Town and Las Palmas before the rig’s first long trip finally ends West of Shetland to start up drilling operations for BP in Q1 2015. ‘Deepsea Aberdeen’ is a sixth generation ultra deepwater and harsh environment semisubmersible of enhanced GVA 7500 design. The semisubmersible will perform drilling operations West of Shetland under a seven-year contract with BP.

'Deepsea Atlantic' to plug well on Gullfaks South

Statoil has received consent to use ‘Deepsea Atlantic’ for permanent plugging of well 34/10-52A/B at Gullfaks Sør. Gullfaks Sør lies due south of Gullfaks in the northern part of the North Sea. The field has been developed using a total of 12 subsea templates tied back to the Gullfaks A and Gullfaks C facilities. Expected start-up of the operation is mid-August 2014, with a duration of approx. 16 days. ‘Deepsea Atlantic’ is a drilling facility of the MODU GVA 7500 type and is operated by Odfjell Drilling AS. The facility was completed in 2009, is registered in Norway and is classified by DNV.

Odfjell Drilling takes delivery of 'Deepsea Aberdeen'

Odfjell Drilling has today taken delivery of Deepsea Aberdeen from Daewoo Shipbuilding & Marine Engineering (DSME) in Korea. “We are pleased to take delivery of Deepsea Aberdeen. The rig is an important contribution to our fleet and operations and we are well prepared to ensure a safe and efficient commencement of operations for BP West of Shetland, says CEO Simen Lieungh”. Deepsea Aberdeen is the latest addition to Odfjell Drilling’s fleet of harsh environment and ultra-deepwater drilling units. The semi-submersible is of same design and incorporates the excellent operational performance as Deepsea Atlantic and Deepsea Stavanger. Deepsea Aberdeen will now start on its voyage to West of Shetland for its 7-year contract with BP. Commencement on drilling operations is expected to take place in second half of Q1 2015.

CIMC has Keel Laying Ceremony for Beacon Atlantic

On the 7th Nov.2014, the keel laying ceremony for GM4-D Beacon Atlantic, the 9th semisubmersible drilling rig to be built by CIMC Raffles, was held in Yantai CIMC Construction Base. The president of CIMC Raffles Mr. Yu Ya and related shipowners and surveyors witnessed this milestone. The keel laying ceremony remarked the commencement of block erection of the project. Beacon Atlantic is the 6th semisubmersible drilling rig of GM Series CIMC Raffles designed and built. CIMC Raffles owns its 80% IRP. The Beacon Atlantic is the sister rig of the North Dragon, which is also under construction at CIMC Raffles shipyard in China.

'Deepsea Aberdeen' begins drilling contract on Quad 204 field development

Odfjell Drilling has announced that today, the Deepsea Aberdeen semisub commenced drilling operations under its 7-year contract with BP on the Quad 204 field development project West of Shetland, UK. Deepsea Aberdeen is the latest addition to Odfjell Drilling’s fleet of ultra-deepwater and harsh environment mobile offshore drilling units. The rig was delivered from the DSME yard in South Korea in November 2014. The start of drilling operations of Deepsea Aberdeen marks another step in the development of Odfjell Drilling’s activities in the UK and harsh environment offshore regions. The rig design is based on our more than 40 years’ experience of drilling in the North Sea. Our offshore crew and our onshore organisation in UK are looking forward to working collaboratively with BP over the next seven years on the Quad 204 development, says CEO of Odfjell Drilling, Simen Lieungh.

Odfjell Drilling expects Brazilian newbuilds to be delayed by one year

Odfjell Drilling (“Odfjell”) today released its annual report for 2014. Within the report Odfjell highlighted its ownership of three of the drillships being constructed as part of Sete Brasil’s Brazilian drillship campaign. Odfjell is involved with the construction of three drillships in Brazil, that would be managed by Odfjell Galvao (Odfjell owns 50% of the management company) following construction at the Estaleiro Jurong Aracruz shipyard in Brazil. Whilst construction of the first unit is progressing, there is risk and uncertainty related to the newbuild programme in Brazil linked to Sete Brasil’s financial troubles. Odfjell expects that each of the drillship projects will be delayed by at least one year compared to the original delivery plan.

PSA approves drilling of two production wells at Gullfaks Sør

Statoil has received consent from the Petroleum Safery Authority (“PSA”) in Norway to use the Deepsea Atlantic to drill two production wells at Gullfaks Sør. Statoil is the operator for Gullfaks Sør, located in the Tampen area in the northern part of the North Sea, south of the Gullfaks field. Gullfaks Sør has been developed using subsea well templates tied back to Gullfaks A and C by underwater pipelines. Production from the field began in 1998. Statoil intends to drill two production wells from a new well template on the Rimfaksdalen gas discovery. In addition, a well is to be drilled next to the well template to investigate if there is shallow gas nearby. This well will be plugged when the result is in. Water depth at the site is 137 metres.

Statoil contracts Odfjell Drilling for Johan Sverdrup development

Odfjell Drilling Ltd. (“Odfjell”) has announced that the company has been awarded two contracts related to the drilling services for the Johan Sverdrup field in Norway. The first contract is a three year contract for the Deepsea Atlantic semisub which is scheduled to begin in March 2016. The firm contract period is for three years with a value of USD330 million and comes with 6x6 potential option periods. The second contract is related to the operation of platform drilling services on-board the Johan Sverdrup drilling platform and this contract is over a four year period.

Aibel wins contract for 'Deepsea Bergen' SPS

Odfjell Drilling has awarded Aibel Haugesund a contract for yard stay services related to the periodic survey for Deepsea Bergen. The contract has a value of NOK 40m (USD5.1m). The yard stay will take place early in the autumn 2015 and will amongst other cover inspection activities for structure, piping and tanks which must be done while the rig is located at yard. The periodic survey and the yard stay are planned according to Odfjell Drilling’s survey strategy minimising the time off hire and the length of the yard stay. Activities related to the periodic survey have been ongoing since early 2014. The yard stay is estimated to 30 days excluding sailing time.

Odfjell Drilling announces new contract award from Wintershall Norge AS

Wintershall Norge AS has awarded Odfjell Drilling's semi-submersible Deepsea Stavanger a contract for the drilling of production wells on the Maria field in the Haltenbanken area on the Norwegian Continental Shelf. The firm contract is for six wells with an expected duration of 574 days and an estimated contract value of USD175 million. Contract commencement is estimated to 1 April 2017. The contract additionally contains a one-well option prior to the firm contract and two wells after the firm period. The estimated contract value of the optional wells is USD 98 million. Deepsea Stavanger is currently employed by BP in Angola on a contract that is expected to mature during November this year. Odfjell Drilling continues to market the rig in order to secure temporary employment for Deepsea Stavanger to fill the gap to its start-up on the Maria field.

Seadrill terminates under construction 'West Mira' semisub

Seadrill Limited ("Seadrill" ), has notified Hyundai Heavy Industries Co Ltd. ("HHI") that it has exercised its right to cancel the contract for the construction of the West Mira, a sixth generation ultra-deepwater harsh environment semisubmersible drilling unit ("West Mira"). The West Mira was ordered during the second quarter of 2012 and the delivery date stated in the construction contract was by December 31st, 2014. Due to HHI’s inability to deliver the West Mira within the timeframe required under the contract, Seadrill has exercised its cancellation rights. Under the contract terms, Seadrill has the ability to recoup the USD168 million in pre-delivery instalments to HHI, plus accrued interest. In the fourth quarter of 2012 Seadrill was awarded a five year contract for the West Mira with Husky Oil Operations Limited ("Husky") for operations in Canada and Greenland. As stated in Seadrill’s second quarter earnings report, due to the late delivery of the West Mira, Seadrill had tentatively agreed with Husky to reduce the dayrate of the drilling contract. Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements.

Contract associated with cancelled 'West Mira' semisub also now cancelled

Seadrill Limited ("Seadrill"), has been notified by Husky Oil Operations Limited ("Husky") of the cancellation of the drilling contract for the West Mira ("The Unit"). In the fourth quarter of 2012 Seadrill was awarded a five-year contract for the West Mira with Husky for operations in Canada and Greenland. The total estimated base revenue potential was approximately USD1 billion. As stated in Seadrill’s second quarter earnings report, due to the late delivery of the Unit, Seadrill tentatively agreed with Husky to reduce the dayrate on the West Mira. The construction contract was subsequently cancelled by Seadrill due to the Shipyard's inability to deliver the Unit within the timeframe required under the contract. Seadrill remains in discussions with Husky to find an alternative solution to meet its drilling requirements.

Audit of Deepsea Bergen

On 21 and 22 September 2015, the PSA carried out an audit of Deepsea Bergen while the facility was at the Aibel Haugesund yard. The audit was focused on Odfjell Drilling's management of hull inspection, verification of the lifetime of structures and findings made during the layover. This audit was in continuation of the audit's first part carried out in June 2015. The purpose of the audit was to see how, as the rig owner, Odfjell Drilling was ensuring the safety of ageing facilities that have received an Acknowledgement of Compliance (AoC), in terms of ageing mechanisms and modifications, and how learning from identified ageing mechanisms and factors in previous incidents are used with respect to the structural safety of Deepsea Bergen. No non-conformities or improvement points were identified during this audit.

Successful visit to the shipyard

Today the drilling rig Deepsea Bergen leaves the shipyard in Haugesund after completing its 5-year classification. The assignment has been performed within the agreed timeframe. On behalf of Odfjell Drilling, Aibel has carried out work associated with the 5-year classification of the drilling rig. The work comprised inspections and modifications related to structure and pipes, among other things. Aibel's Project Manager Jarle Toft explains that many activities had to be carried out in narrow areas on board. There was also a need for extensive cleaning prior to the work commencing. "We have been working to a tight schedule and have achieved a lot in a short period of time. Handover took place at the end of September, and our part of the work took 21 days," the Project Manager says. He also notes that there have not been any serious incidents, and that employees have had an excellent focus on HSE.

Hyundai asks for more time and money to complete 'Bollsta Dolphin'

Bollsta Dolphin Pte. Ltd (“Bollsta”), a wholly owned subsidiary of Fred. Olsen Energy ASA (“FOE”), today received a notice of arbitration from Hyundai Heavy Industries Co. Ltd. (“HHI”). HHI alleges that it is entitled to an additional payment of about USD167 million and additional time to complete and deliver a Semi-Submersible Drilling Unit which is under construction by HHI pursuant to a newbuilding contract that was entered into between HHI and Bollsta in 2012. Reference in this regard is made to our previous announcement to the Oslo Stock Exchange on 25 May 2012. FOE believes that HHI claim’s is considered unfounded.

Bollsta Dolphin - Termination of Construction Contract and Drilling Contract

Bollsta Dolphin Pte. Limited (“Bollsta”), a wholly owned subsidiary of Fred. Olsen Energy ASA (“FOE”), has notified Hyundai Heavy Industries Co., Ltd. Korea (“HHI”) that it has exercised its contractual termination right under a newbuilding contract between HHI and Bollsta for the construction of a semi-submersible drilling rig (the “Rig”) as a result of delay in delivery of the Rig. The rig construction contract provides that on termination Bollsta will be entitled to a refund of the first instalment paid to HHI of USD 186,390,240 plus accrued interest. The Rig was on 26 October 2012 contracted by Dolphin Drilling Ltd., another wholly owned subsidiary of FOE (“DDL”), to Chevron North Sea Limited (“CNSL”). CNSL (as operator on behalf of its coventurers) and DDL have mutually terminated the drilling contract on amicable terms.

Deepsea Stavanger Awarded Drilling Contract with JX Nippon

JX Nippon Exploration and Production (U.K.) Limited (“JX Nippon”) has awarded Odfjell Drilling’s semi-submersible Deepsea Stavanger a contract for drilling one exploration well located West of Shetland on the UK Continental Shelf. “The contract with JX Nippon secures interim utilisation of Deepsea Stavanger before start up of the Wintershall drilling contract in 2017. We have a fleet of high performing rigs with a strong track record that gives us confidence in our market position even if the competition is tougher than ever. We look forward to demonstrating our capabilities for JX Nippon and its partners in the UK.” says Mr Simen Lieungh, CEO of Odfjell Drilling. Contract duration is estimated to be between 60 and 75 days and expected commencement is Q2 2016. Deepsea Stavanger finalised its contract with BP in Angola in November 2015 and has thereafter completed its 5-year special periodic survey. The rig is now underway to Norway before mobilising to UK waters for start-up on the JX Nippon contract. Deepsea Stavanger has a contract with Wintershall on the Maria field on the Norwegian Continental Shelf starting early 2017.

Production drilling started on Johan Sverdrup

At 00:00 on Tuesday 1 March the Deepsea Atlantic drilling rig commenced on the first of a total of 35 wells to be drilled in the first phase of the Johan Sverdrup field development. “The Deepsea Atlantic drilling rig is currently predrilling the first production well for the first phase of the Johan Sverdrup development. This is a central operation in a complex Johan Sverdrup puzzle. Predrilling allows the production capacity on the field to be utilised as efficiently as possible when Johan Sverdrup has come on stream late in 2019. This way, we maximize value from the field from day one,” says Kjetel Digre, senior vice president for the Johan Sverdrup project. The rig is drilling the first production well through a predrilling template that was installed on the field in the summer of 2015. A total of eight wells will be drilled through the predrilling template, before the rig is relocating to drill injection wells on three locations on the field. In 2018 the permanent Johan Sverdrup drilling platform will be installed as the second of four platforms. The drilling platform is currently being constructed at Aibel’s yard in Haugesund, north of Stavanger, and in Thailand. When the drilling platform is installed and operational, the eight predrilled wells will be hooked up from the predrilling template. At this point Deepsea Atlantic will be drilling the injection wells providing reservoir pressure support to maintain high field production. The operator Statoil, the rig owner Odfjell Drilling and the drilling service provider Baker Hughes have cooperated closely to ensure safe and cost-effective deliveries. The Johan Sverdrup project introduces integrated drilling services as a new concept, which means that Baker Hughes will provide the main deliveries together with Odfjell Drilling. “Statoil and the drilling service providers have worked as an integrated team in planning the drilling operation. Deepsea Atlantic is a good rig and everything is set for a safe and cost-effective drilling operation on Johan Sverdrup. This is vital to ensure production start from the field at the end of 2019,” says Digre. The contract for integrated drilling services worth NOK 1.5 billion was awarded to Baker Hughes on 6 July 2015. The contract for rig and drilling services on Johan Sverdrup, totalling more than NOK 4.35 billion, was awarded to Odfjell Drilling on 15 June 2015. Contracts worth more than NOK 50 billion have been awarded by the Johan Sverdrup project. More than 70% of them have been awarded to suppliers with a Norwegian billing address.

Production drilling started on Johan Sverdrup

At 00:00 on Tuesday 1 March the Deepsea Atlantic drilling rig commenced on the first of a total of 35 wells to be drilled in the first phase of the Johan Sverdrup field development. “The Deepsea Atlantic drilling rig is currently predrilling the first production well for the first phase of the Johan Sverdrup development. This is a central operation in a complex Johan Sverdrup puzzle. Predrilling allows the production capacity on the field to be utilised as efficiently as possible when Johan Sverdrup has come on stream late in 2019. This way, we maximize value from the field from day one,” says Kjetel Digre, senior vice president for the Johan Sverdrup project. The rig is drilling the first production well through a predrilling template that was installed on the field in the summer of 2015. A total of eight wells will be drilled through the predrilling template, before the rig is relocating to drill injection wells on three locations on the field. In 2018 the permanent Johan Sverdrup drilling platform will be installed as the second of four platforms. The drilling platform is currently being constructed at Aibel’s yard in Haugesund, north of Stavanger, and in Thailand. When the drilling platform is installed and operational, the eight predrilled wells will be hooked up from the predrilling template. At this point Deepsea Atlantic will be drilling the injection wells providing reservoir pressure support to maintain high field production. The operator Statoil, the rig owner Odfjell Drilling and the drilling service provider Baker Hughes have cooperated closely to ensure safe and cost-effective deliveries. The Johan Sverdrup project introduces integrated drilling services as a new concept, which means that Baker Hughes will provide the main deliveries together with Odfjell Drilling. “Statoil and the drilling service providers have worked as an integrated team in planning the drilling operation. Deepsea Atlantic is a good rig and everything is set for a safe and cost-effective drilling operation on Johan Sverdrup. This is vital to ensure production start from the field at the end of 2019,” says Digre. The contract for integrated drilling services worth NOK 1.5 billion was awarded to Baker Hughes on 6 July 2015. The contract for rig and drilling services on Johan Sverdrup, totalling more than NOK 4.35 billion, was awarded to Odfjell Drilling on 15 June 2015. Contracts worth more than NOK 50 billion have been awarded by the Johan Sverdrup project. More than 70% of them have been awarded to suppliers with a Norwegian billing address.

Bollsta Dolphin Settlement

Fred. Olsen Energy ASA and Hyundai Heavy Industries Co., Ltd. ("HHI") are pleased to announce that they have resolved by commercial agreement their disputes and differences arising in connection with the newbuilding contract for the construction of the semi-submersible drilling platform "Bollsta Dolphin". Ownership of the platform will be retained by HHI and the arbitration proceedings associated with the disputes have been terminated by consent. All of the claims that have been asserted by the parties have been withdrawn and Bollsta will receive about MUSD 176, 4 from HHI of the first instalment paid by Bollsta. In a joint statement, the parties said: "We are very pleased that our differences have been resolved in an amicable way.”

Drilling permit for well 16/2-22 S in production licence 265

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 16/2-22 S, cf. Section 8 of the Resource Management Regulations. Well 16/2-22 S will be drilled from the Deepsea Atlantic drilling facility in position 58°55’33.5’’ north and 2°24’33.2’’ east in a northwest extension of the Johan Sverdrup field in the central North Sea. The drilling programme for well 16/2-22 S concerns the drilling of an appraisal well on Johan Sverdrup in production licence 265. Statoil Petroleum AS is the operator with 40 per cent and the other licensees are Petoro AS with 30 per cent, Aker BP ASA with 20 per cent and Lundin Norway AS with 10 per cent. The area in this licence consists of part of block 16/2. The well will be drilled about 2 kilometres northwest of the 16/2-9 S well in the Tonjer West segment on Johan Sverdrup. Production licence 265 was awarded in on 24 April 2001 (North Sea Awards 2000). This is the 16th exploration well to be drilled in the licence area and the 12th exploration well on or near Johan Sverdrup in licence 265. The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.

Statoil receives consent for exploration drilling in the Norwegian Sea

The PSA has given Statoil consent to drill exploration well 6507/3-12 in the Norwegian Sea. Statoil is the operator for production licence 159B in block 6507/3 in the Norwegian Sea west of Sandnessjøen. The PSA has given Statoil consent to drill exploration well 6507/3-12 in a prospect named Mim. The drilling location is around 8 kilometres south-west of Norne. Water depth at the site is 381 metres. Drilling is scheduled to begin in early January 2017 and will last 27 days. A possible sidetrack from the well will take a further 18 days. The well is to be drilled by Deepsea Bergen, which is a semi-submersible drilling facility owned and operated by Odfjell Drilling. The facility is an Aker H-3 type, built in 1963. It is classified by DNV GL and registered in Norway. Deepsea Bergen was issued with an Acknowledgement of Compliance (AoC) by the PSA in December 2001.

Drilling permit for wellbore 6507/3-12 in production licence 159 B

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for wellbore 6507/3-12, cf. Section 8 of the Resource Management Regulations. Wellbore 6507/3-12 will be drilled from the Deepsea Bergen drilling facility at position 65° 58' 3.93" north and 7° 56' 1.64" east. The drilling program for wellbore 6507/3-12 relates to the drilling of a wildcat well in production licence 159 B. Statoil Petroleum AS is the operator with an ownership interest of 85 per cent. The other licensee is Dong E&P Norge AS with 15 per cent. The area in this licence consists of a part of block 6507/3. The well will be drilled about 11 kilometres southwest of the Norne field. Production licence 159 was awarded in licensing round 12 Part B on the Norwegian shelf and production licence 159 B was carved out on 13 August 2004. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activities.

Drilling permit for well 6507/3-12 A in production licence 159 B

The Norwegian Petroleum Directorate has granted Statoil Petroleum AS a drilling permit for well 6507/3-12 A, cf. Section 8 of the Resource Management Regulations. Well 6507/3-12 A will be drilled with the Deepsea Bergen drilling facility at position 65°58' 3.93" north and 7°56' 1.64" east. The drilling program for well 6507/3-12 A relates to the drilling of an appraisal well in production licence 159 B. Statoil Petroleum AS is the operator with an ownership interest of 85 per cent. The other licensee is Dong E&P Norge AS with 15 per cent. The area in this licence is part of block 6507/3. The well will be drilled about 11 kilometres southwest of the Norne field. Production licence 159 was awarded in licensing round 12 Part B on the Norwegian shelf, and production licence 159 B was carved out on 13 August 2004. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activity.

Seadrill Limited Announces Settlement of West Mira Arbitration

Seadrill Limited ("Seadrill" or "the Company") announces today that it has reached a settlement agreement with Hyundai Samho Heavy Industries Co Ltd. ("HSHI") in relation to the West Mira ("the Unit") arbitration. Seadrill will receive a cash payment of $170 million in March 2017 as full settlement of the dispute. Arbitration proceedings began in October 2015 following the cancellation of the construction contract for the West Mira and were expected to conclude during the first half of 2018. This settlement agreement brings an early conclusion to the arbitration process. The Company will take a non-cash impairment of approximately $44 million to reflect the difference between the carrying value of the West Mira receivable and the cash payment to be received. As part of this settlement, Seatankers, a related party, has purchased the West Mira from HSHI. Seatankers is an asset holding company and is not expected to engage in offshore drilling activities in competition with Seadrill. The Company expects to execute an agreement with Seatankers for the commercial and technical management of the West Mira as well as a right of first refusal for purchase of the Unit.

Minor gas discovery east of the Alve field in the Norwegian Sea – 6507/3-12 and 6507/3-12 A

Statoil Petroleum AS, operator of production licence 159 B, has completed the drilling of wildcat well 6507/3-12 and appraisal well 6507/3-12 A. The wells proved gas. The wells were drilled about six kilometres east of the Alve field in the northern part of the Norwegian Sea and about 200 kilometres west of Sandnessjøen. The primary exploration target for wildcat well 6507/3-12 was to prove petroleum in Middle Jurassic reservoir rocks (Garn and Not formations). The secondary exploration target was to prove petroleum in Middle Jurassic reservoir rocks (Ile formation). Another goal was to collect geological data if Cretaceous sandstone rocks were present. The primary target for appraisal well 6507/3-12 A was to delineate the Cretaceous gas discovery (Lysing formation). Well 6507/3-12 encountered a total gas column of about 7 metres in a Late Cretaceous sandstone layer with good reservoir properties. In the primary and secondary exploration targets, the well encountered about 30-metres of aquiferous sandstone in the Garn and Not formations, and about 65 metres of aquiferous sandstone in the Ile and Tofte formations, all with good to moderate reservoir properties. Well 6507/3-12 A was stopped due to technical issues regarding presumed gas-filled sandstone, and no further attempts were made to drill the appraisal well. Preliminary estimations place the size of the discovery between one and five billion standard cubic metres (Sm3) of recoverable gas. The licensees will assess the discovery along with other nearby discoveries/prospects with regard to a possible development. Well 6507/3-12 was not formation-tested, but data has been collected and samples were taken. These are the third and fourth exploration wells in production licence 159 B. The licence was carved out of production licence 159 on 13 August 2004. Well 6507/3-12 was drilled to a vertical depth of 3428 metres below the sea surface, and was terminated in the Tofte formation in the Early Jurassic. Well 6507/3-12 A was drilled to a vertical depth of 2529 metres below the sea surface and was terminated in the Springar or Nise formation in the Late Cretaceous. Water depth is 381 metres. The wells will be permanently plugged and abandoned. Wells 6507/3-12 and 6507/3-12 A were drilled by the Deep Sea Bergen drilling facility, which will now proceed to the Åsgard field in the Norwegian Sea to complete production well 6506/12-S-4 BH.

CHC Announces New Contract with Faroe Petroleum

CHC Group (the "Company" or "CHC") today announced it has been awarded a new contract with Faroe Petroleum to provide helicopter services in support of their exploration drilling program at the Brasse Field in the North Sea."We are excited to work with Faroe Petroleum as their aviation partner in this project," said Arne Roland, CHC Regional Director for Nordic Countries, Eastern Europe, Caspian and Canada (NECC). "This project allows us to continue to build on our decades of experience supporting oil and gas customers in the Norwegian Continental Shelf as we continue to evolve our services and technology to best meet their needs."The operation will begin in summer 2017, flying from CHC's base in Bergen using a Sikorsky S-92, which has a proven safety and availability record, reaching more than one million fleet hours of service in 2016.Faroe Petroleum’s drilling program is expected to last for an initial period of approximately 70 days and the contract includes an option to extend CHC’s services beyond this initial period."CHC is proud to continue a safe and reliable transportation offering to customers in and around the North Sea," said Karl Fessenden, President and CEO of CHC Helicopter. "We look forward to helping Faroe Petroleum meet their transportation needs throughout this project and are eager to start flying on their behalf upon project commencement later this year."

Drilling permit for well 31/7-2 S in production licence 740

The Norwegian Petroleum Directorate has granted Faroe Petroleum Norge AS a drilling permit for well 31/7-2 S, cf. Section 8 of the Resource Management Regulations. Well 31/7-2 S will be drilled from the Deepsea Bergen drilling facility, at position 60°24'18.17"N and 3°2'23.75"E in production licence 740. The drilling programme for well 31/7-2 S relates to the drilling of an appraisal well. Faroe Petroleum Norge AS is the operator with an ownership interest of 50 per cent, and Core Energy AS is a licensee with 50 per cent. The area in this licence constitutes a part of blocks 31/7 and 30/9. Production licence 740 was awarded in APA 2013, 7 February 2014. This is the third well to be drilled in the licence. The permit is contingent upon the operator securing all other permits and consents required by other authorities prior to commencing drilling activities.

Brasse Appraisal Well Consent

Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway, the UK and Atlantic Margin, is pleased to announce that all relevant consents have been received for the drilling of an appraisal well 31/7-2S on the Brasse discovery (Faroe 50%). Faroe, as operator has entered into a contract with Odfjell Drilling for the use of the semi-submersible drilling rig, Deepsea Bergen, for the drilling operations which are expected to commence before the end of this month with the earliest spud date being on or around 18 May 2017. The Brasse discovery is located within tie-back distance to existing infrastructure: 13 kilometres to the south of the Brage field platform, in which the Company holds a 14.3% working interest and 13 kilometres to the south east of the Oseberg Field Centre. The co-venturer in the Brasse licence PL740 Faroe is Point Resources AS (50%).

Brasse Appraisal Well Spuds

Faroe Petroleum has announced that the Brasse appraisal well (well number 31/7-2S) has commenced drilling. The Brasse field was discovered in licence PL740 in July 2016. The primary objectives of the appraisal well are to reduce uncertainty in the reserve estimates and provide more information for the development project. According to Faroe, a decision on a second Brasse appraisal well will be made later this year. The well is being drilled by Odfjell Drilling's Deepsea Bergen semisub.

Stena Drilling cancels newbuilding construction contract for semi-sub Stena MidMAX

Stena Atlantic Ltd, an affiliate of Stena Drilling Ltd, has today notified the Korean shipbuilder, Samsung Heavy Industries Co Ltd (SHI), that it has exercised its right to cancel their contract for the construction of “Stena MidMAX”, a dynamically positioned harsh environment semisubmersible drilling unit. The rig was ordered in June 2013 with a delivery date in March 2016. SHI has, however, been unable to complete and deliver the unit within the contractually agreed timeframe. Under the contract terms, Stena Atlantic is entitled to reimbursement of $215.4 million in pre-delivery instalments paid to SHI, plus accrued interest. Stena Atlantic is also intending to pursue claims for compensation in respect of its costs incurred in relation to the project.

Statoil receives consent for exploration drilling in the Norwegian Sea

Statoil has received consent to drill an exploration well in block 6507/8 in the Norwegian Sea. The well is to be drilled in a prospect named Carmen in block 6507/8 at Haltenbanken. The site is 222 kilometres west of Brønnøysund in Nordland county and 10 kilometres north-east of Heidrun. A pilot well will be drilled first, down to 800 metres, to investigate if there is shallow gas in the area. Water depth at the site is 358 metres. The drilling is estimated to last for 18 days, and will begin in mid-June. The well is to be drilled by Deepsea Bergen, which is a semi-submersible drilling facility of the Aker H-3.2 type, built at Aker Verdal in 1983. It is owned and operated by Odfjell Drilling. It is classified by DNV GL and registered in Norway. Deepsea Bergen was issued with an Acknowledgement of Compliance (AoC) by the PSA in December 2001.