Horizon Oil spuds first of two wells in China

Horizon Oil has advised that drilling has commenced on the first of two exploration wells in Beibu Gulf Block 22/12, offshore China. The first well, WZ 12-10-1, is targeting the T42 and Weizhou West formations, adjacent to the WZ 12-8E field of the WZ 12-8 Development Area. The second planned well in the sequence is the WZ 12-10-2 well, located adjacent to the WZ 12-8W field. Concurrently, the Development Area has been expanded to fully include the prospect, increasing the WZ 12-8 Development Area by 8.8 sq km to 66.6 sq km. Drilling operations are being performed by the jackup rig ‘HAI YANG SHI YOU 935’ and commenced at 10.30 pm China Standard Time on 10th September 2014 and the current operation is cementing 20” conductor casing at a depth of 120 m. Total depth planned for this vertical well is 1,539 m. The well is located 4.7 km east northeast of the existing WZ 12-8W platform and is in water depth of approximately 35 m.

IPB gives firm date for 'Stena Clyde' handover

IPB Petroleum is pleased to advise that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25% and Operator) have received notice from the rig contractor that the estimated commencement date for the Pryderi-1 rig contract is 17th October, 2014. Subject to current operations at the Puffin field (located approximately 120 km north of WA-424-P), and based on the estimated mobilisation date, IPB Petroleum estimates that the ‘Stena Clyde’ semi-submersible rig will arrive at the Pryderi-1 well location on or around the 19th October, 2014. Pryderi-1 is a relatively shallow well and IPB estimates that the well could intersect the target reservoir before the end of October. There will be up to an estimated additional 3 or 4 days of logging before the well is then to be plugged and abandoned. The Pryderi prospect is estimated by IPB to have High, Best and Low Prospective Resources (100%) of 78 MMbbls, 32 MMbbls, and 12 MMbbls respectively and lies in 75m of water and is located approximately 10 km away from the permit’s existing Gwydion oil discovery.

CNOOC strikes oil at Beibu

Roc Oil (China) Company, a wholly owned subsidiary of Roc Oil Company Limited (ASX: ROC), advised drilling was completed on the first of two exploration wells in the Beibu Gulf Block 22/12. The WZ12-10-1 well has discovered oil pay in the Jiaowei (T42) formation, while no oil pay was interpreted in the Weizhou formation. The WZ12-10-1 well was drilled to a total depth of 1406m MD/1373m TVDSS, where the Basement granite has been intersected. The well discovered oil in the very top of the Jiaowei (T42) formation over an interval of 5.5m, with a high porosity net oil pay of 4.2m. A sidetrack (WZ12-10-1Sa) was then drilled with 340m eastern step out to a total depth of 1265m MD/1105m TVDSS to prove up the up dip T42 reservoir and confirmed oil in the very top of the Jiaowei (T42) formation with a thicker net oil pay of 5.5m. The well is located 4.7km northeast of the existing WZ12-8W Platform and approximately 2.7km west of the WZ12-8E discovery wells. Wireline evaluation logging program (NMR, MDT Pressuring and Sampling) has been run, which confirmed the oil pay in T42 reservoir. The well was plugged and abandoned on 27th September 2014. This discovery will be evaluated on how best to integrate it into the Beibu Project. Rig ‘HYSY 935’ will be moved to the WZ12-10-2 exploration location to drill the second and final well in this program. Mr Alan Linn, Chief Executive Officer stated "This oil discovery adds potentially valuable incremental oil to the Beibu project. The location of the oil discovery allows ROC and the joint venture to evaluate alternative development scenarios, particularly integration with the Beibu WZ12-8E oil discovery".

CNOOC spuds second Beibu Gulf exploration well

Roc Oil (China) Company, a wholly owned subsidiary of Roc Oil Company Limited (ROC), advised today that drilling has commenced on the second of two exploration wells in Beibu Gulf Block 22/12. The second well, WZ12-10-2, is targeting the T42 and Weizhou formations, adjacent to the WZ12-8 West field in the WZ12-8 Development Area. Drilling from jackup rig ‘HYSY 935’ commenced at 23:00 China Standard Time on 3rd October 2014. Total depth planned for this vertical well is 1,600 metres MD/1416 metres TVD. The well is located 1.6 kilometres East Northeast from ROC’s existing Beibu 12-8W facilities and is in water depth of approximately 36 metres.

Horizon Oil makes second discovery in Beibu Gulf

Horizon Oil advises that drilling of the second of a two exploration well program in the Beibu Gulf Block 22/12 has been completed. The WZ 12-10-2 well is located is located in 36 m of water 1.6 km east northeast of the existing WZ 12-8W platform and about 3.2 km west southwest of the recently drilled WZ 12-10-1 oil discovery (see map below). The well spudded at 2300 hrs China Standard Time on 3rd October 2014 with the COSL Rig ‘HYSY 935’. The current exploration well, WZ 12-10-2, discovered high porosity net oil pay of ~11 m true vertical depth in the Jiaowei T42 formation. The well was drilled to a total measured depth of 1,590 m (1,382 m TVDSS), where granite basement was intersected, as prognosed. Wireline evaluation logging programs, including pressure measurements, fluid sampling, formation imaging and sidewall coring, have been run and confirmed the oil pay in the Jiaowei T42 reservoir has favourable reservoir porosities of about 31% and oil gravity of approximately 29 deg API. The well has been plugged and abandoned and the rig will be released shortly. The 2014 Beibu exploration drilling program has been successfully completed with no safety or environmental incidents. Further work will now be undertaken to evaluate both the extent of the structure and reserves, and assess the most effective route for integrating these additional oil resources into the existing Beibu project.

Delivery of 'Stena Clyde' to IPB is further delayed

IPB Petroleum advises that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25% and Operator) has received updated advice from its drilling contractor that the estimated commencement date for the Pryderi-1 rig contract is around 24th October, 2014. Subject to completion of current operations at the Puffin field (located approximately 120 km north of WA-424-P), and based on the estimated mobilisation date, IPB Petroleum estimates that the Stena Clyde semi-submersible rig will arrive at the Pryderi-1 well location on or around the 25th or 26th October, 2014. Pryderi-1 is a relatively shallow well and based on the current schedule IPB estimates that the target reservoir will be intersected during the first week of November. The well is to then be logged before being plugged and abandoned.

Pryderi-1 well spud pushed back to late October 2014

IPB Petroleum advises that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25% and Operator) has received an update from its drilling contractor that the estimated commencement date for the Pryderi-1 rig contract is now due late October to early November 2014. Due to a projected extension in current rig operations at the Puffin field (located north of WA-424-P), IPB Petroleum now estimates that the Stena Clyde semi-submersible rig will begin mobilisation to the Pryderi-1 well location late October to early November 2014.Unless the schedule changes materially over the coming 1 - 2 weeks, IPB will next update shareholders in relation to the Pryderi-1 well at the time of the rig handover. Pryderi-1 is a relatively shallow well and based on the current schedule IPB estimates that the target reservoir will be intersected within a week of spudding the well. Following logging this Pryderi-1 well will then be plugged and abandoned.

Stena Clyde mobilises to drill Pryderi-1

IPB Petroleum is pleased to advise that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25% and Operator) has received notification that the Stena Clyde drill rig departed the Puffin field location this morning and that the rig is currently under tow to the Pryderi-1 location in WA-424-P. IPB Petroleum estimates that the Stena Clyde will arrive at the Pryderi-1 location later this week with spudding to commence shortly thereafter. IPB intends to make a further ASX announcement when this occurs.Pryderi-1 is a relatively shallow well and based on the current schedule IPB estimates that the target reservoir will be intersected within a week of spudding the well. Following logging this Pryderi-1 well will then be plugged and abandoned.

Pryderi-1 exploration well spudded in Australia

IPB Petroleum is pleased to advise that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25% and Operator) has received notification that the Stena Clyde drill rig arrived at the Pryderi-1 location in WA-424-P late evening on 6 November. The Pryderi-1 well was spudded early morning of 9th November. Pryderi-1 is a relatively shallow well and based on the current well schedule IPB estimates that the target reservoir will be intersected later this week. Over the next 24 hours, planned operations include the commencement of drilling the 17.5 inch section of the well.

Nanhai Jiu Hao drills deepwater well

China Oilfield Services Limited (COSL) saw its semi-submersible drilling rig NH9 recently completed drilling operations for the first 1,000-meter deep water well. This achievement has made NH9 the second drilling rig included in the league of “1,000-meter-deep Drilling” after HYSY981. This success made in the inaugural drilling operation of NH9 has taken deep-water drilling operations of the Group to a new level with further refinements in deep-water drilling technologies and equipment portfolio. This establishes a firm footing for large-scale exploration and development activities in the future. NH9 is the deepest operation depth semi-submersible drilling rig put into operation by COSL in addition to HYSY981. It is a fourth-generation drilling rig with designed operation depth of up to 1,524 meters and the maximum drilling depth of 7,620 meters. Mr. Li Yong, CEO and President of COSL, said: “Levering efforts by the COSL’s team in establishing a deep-water drilling equipment portfolio, the Group seen its deep-water drilling capability enhance further. This helped COSL tap the escalating demand for deep-water operation in South China Sea. The Group will adhere to its positioning of establishing world-class capabilities to continue to increase investments in furthering its deep-water capabilities, research and development. This will help COSL move closer to his goal of becoming a top-notch oilfield services Group with cutting edge equipment, technologies and scientific management.

CalEnergy's Pryderi-1 well comes up dry

IPB Petroleum advises that the Pryderi-1 exploration well in WA-424-P (IPB 75%, CalEnergy 25% and Operator) reached a total depth of 694m (RT) in 12.25” hole late afternoon on 15 November 2014 with no moveable hydrocarbons being encountered. Despite some residual oil shows encountered while drilling, the target reservoir at Pryderi is interpreted to be water bearing. Operations over the next 48 hours include the planned plugging and abandoning of the well. IPB now intends to complete further interpretation and analysis on the results of the well to gain an improved understanding of the remaining prospectivity within the permit, which includes the existing Gwydion oil discovery (2C Contingent Resources of 5 MMbbls -100%). IPB’s Managing Director Brendan Brown said “Although the results of this first well are not as predicted, we know that oil is present in this part of the Browse Basin and the data from this well will help us in our ongoing exploration efforts within the permit. IPB remains confident that the company’s existing acreage offers significant hydrocarbon prospectivity in a basin that is a focal point for so many multinational energy companies.” IPB would like to reassure shareholders that the evolution of successful small exploration companies often involves dealing with exploration risk outcomes and pursuing multiple options. The directors aim to also continue with their stated strategy which includes the examination of complementary opportunities, with the ultimate objective of adding to the company’s current exploration portfolio.

Hoidi International to construct legs for Vanda Offshore jackup

China Merchant Heavy Industry has awarded Singapore Based HOIDI International Pte Ltd’s Group (Hoidi), a leg fabrication contract for the Vanda CJ50 jackup project. The scope of work for the contract includes the fabrication, installation, erection & construction of a complete set of legs for the Vanda Offshore Gusto MSC CJ50-X120-E jackup rig, which is a high specification rig, made with an operation depth of 400ft and a hook load of 2,000,000 kips. The jackup rig is currently scheduled to be delivered in Q1 2016, while its main leg component [rack & chord] will be made up of EQ70 special grade steel that can operate in -20°C waters, & suitable for north sea usage.

'HAI YANG SHI YOU 936' delivers quality service to Pemex

HAI YANG SHI YOU 936 (“HYSY 936”), a drilling platform managed by China Oilfield Services Limited (“COSL”) received a letter of endorsement from Petroleos Mexicanos (“PEMEX”) for the high quality services the platform exhibited when performing its operations. HYSY936 is now performing drilling operations for a high-temperature, high-pressure well which is a relatively more difficult for operations in the Mexican waters. This platform has strengthened measures in pre-empting and managing risks and introduced full workflow node quality management and control into day management work, thereby reinforced safety concepts in actual operations. The crew members working on the platform had been able to identify exceptional incidences during the operation stemming from operations by other service providers, and prevented an accident, thereby helped the client avoid huge economic losses that might otherwise incur. PEMEX highly endorsed and praised the platform crew members for their professionalism and the strong sense of responsibility to protect client’s interests. These high quality services helped COSL win further recognitions from the client.

COSL semisub hired to drill in Okhotsk Sea

Magadanmorneftegaz, Lisyanskmorneftegaz (joint ventures of Rosneft and Statoil) and China Oilfield Services Limited (“COSL”) have signed a contract to drill two exploration wells in 2016. The wells will be drilled in the Magadan-1 and Lisyansky areas of the Okhotsk Sea. COSL offered its semi-submersible drilling rig Nanhai-9 and won the tender based on a combined score of technical and economic parameters. The rig was positively evaluated by an audit for compliance with Russian and international requirements. Commenting on the signed document, Igor Sechin, Rosneft Chairman of the Management Board, said: "The agreements reached opens up new prospects for further cooperation between leaders of the oil and gas industry in Russia, Norway and China in the exploration of oil and gas resources."

Primeline Energy to drill two wells utilising 'HAI YANG SHI YOU 941' jackup

Primeline Energy Holdings Inc. (“Primeline”) today announced that it has entered into a turnkey drilling contract with China Oilfield Service Ltd. (“COSL!) for its 2015 exploration programme of two wells in Block 33/07 in the East China Sea. Primeline signed a letter of intent with COSL on 22nd July with regards to the drilling work, and has since negotiated the formal drilling contract with COSL which was entered into on 14th August and under which the drilling operations will now proceed. Under the terms of the drilling contract, COSL has agreed to drill two wells for Primeline on a turnkey basis to the depth and target zone specified by Primeline. If hydrocarbons are discovered, COSL will also conduct tests for Primeline either on a turnkey basis or as a day rate operation as selected by Primeline. Primeline has decided to drill LS23-1-1 as the first well and, depending on the results, will then drill either location LS23-2-1 or LS30-3-1 as the second well. Primeline has the option to suspend operations after the first well if it is necessary to spend additional time carrying out any studies necessary before drilling the second well in order to ensure it is drilled in the optimal location. This two well drilling campaign is part of the rolling development programme Primeline and CNOOC are implementing in the southern part of East China Sea following the completion of development of LS36-1 gas field. Now that LS36-1 gas field is in production, thereby establishing a production hub and access to market, Primeline intends to speed up the exploration programme in order to discover more resources in the nearby area to capitalize the infrastructure and access to market. Any additional resources that are discovered in the area nearby LS36-1 in Block 33/07 can share the infrastructure so any future incremental development will be quick and cost effective. According to COSL’s current planning, LS23-1-1 is scheduled to be spudded around the middle of September 2015 using drilling rig HYSY941. An update will be announced when the drilling operations commence.

Primeline mobilises jackup rig for drilling of LS23-1-1 well in China

Primeline Energy Holdings Inc. (“Primeline”) today announced that its drilling contractor China Oilfield Service Ltd. (“COSL”) has started the mobilisation of the rig for the drilling operation of LS23-1-1 well. Following the signing of the drilling contract by Primeline with COSL as announced on August 17th, 2015, COSL has completed the site survey of the well locations and other preparations for the drilling operations, including the applications for the required operation permits. Primeline held a pre-spud meeting with COSL and all main subcontractors on September 14th. COSL started to tow drilling rig HYSY941 toward the well LS23-1-1 location on the evening of September 15th. The towing operation is expected to last three to five days, subject to weather and sea conditions, followed by jack up, with drilling operations expected to commence around September 22nd.

Primeline Spuds LS23-1-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced the drilling of its LS23-1-1 exploration well has commenced to tap into resources near its LS36-1 gas field production facility. As recently announced, Primeline’s drilling contractor China Oilfield Services Ltd started to tow the drilling rig, HYSY941, on September 15. The rig arrived at LS23-1-1 on September 17 and the subsequent jackup and loading operation was successfully completed. LS23-1-1 was spudded on September 23, 2015. The LS23-1-1 well is in 81 m of water in Block 33/07 in the East China Sea and is 24 km from the LS36-1 gas field platform. The planned total depth of the well is designed to be 2,688 m with several target zones in Palaeocene sediments. The drilling is scheduled to take approximately 30 days including logging. If hydrocarbons are discovered, additional logging or drill stem tests will be carried out. LS23-1-1 is the first exploration well (of two) in Primeline’s current campaign as part of the rolling development program. Based on the result of this well, Primeline will finalize the drilling location of the second well in Block 33/07, which will be either LS30-3-1 or LS23-2-1. Any resources discovered in this drilling campaign can use or share the LS36-1 gas field production infrastructure to speed up development and optimize future development costs and economics.

Primeline Completes LS23-1-1 Well and Will Continue with Drilling of LS30-3-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announces that it has completed the drilling operations of the LS23-1-1 well and will now continue with the exploration drilling programme for the LS30-3-1 well. The LS23-1-1 well was spudded on September 23 and reached total depth (TD) of 2,666m on October 21, 2015 and wireline logging data was subsequently acquired. The well encountered sandstone units of Paleocene and early Cretaceous age, drilling through the geological sequence as anticipated and finished in basement rock. It discovered several zones of gas bearing sandstone and evaluation of logging data indicated total cumulative net pay thickness of 14 metres. The LS23-1 prospect is a technical discovery of hydrocarbon but not likely to be a commercial discovery. Therefore Primeline has plugged and abandoned the well and will proceed with the drilling of the LS30-3-1 well on the basis of the agreed two well work programme. LS30-3-1 is located approximately 20km north of the LS36-1 gasfield platform and is targeting a large channel sand prospect. The prospect was originally mapped in 2009/2010 and refined during the 2014/2015 evaluation. The planned TD of the well is 1,800m, targeting the same reservoir as that of the LS36-1 gasfield. The drilling rig HYSY941 is currently conducting the final operations for the LS23-1-1 well. Once completed, Primeline’s contractor China Oilfield Service Ltd plans to mobilise the rig to the LS30-3-1 location subject to weather and sea conditions, allowance for necessary equipment maintenance and preparation and approval of the operation licence. A separate announcement will be made when the drilling operation of LS30-3-1 commences.

Primeline Commenced Drilling Of LS30-3-1 Well

Primeline Energy Holdings Inc. today announces that it has commenced the drilling operations of the LS30-3-1 well. Following the plug and abandon operation of LS23-1-1 announced on October 28, Primeline’s contractor, China Oilfield Service Ltd. (“COSL”), towed the rig HYSY 941 to theLS30-3-1 location on November 4 and successfully jacked up the rig on location on November 7. COSL subsequently completed all the necessary preparation work and Primeline obtained the operation licence. LS30-3-1 well was then spudded on November 13 and drilling is ongoing. LS30-3-1 is located approximately 20km north of the LS36-1 gasfield platform and is targeting a large channel sand prospect. The planned total depth of the well is 1,800m, targeting the same reservoir as that of the LS36-1 gasfield. The drilling time is anticipated to be around 25 days. The drilling of LS30-3-1 is part of the 2 well exploration drilling programme by Primeline in 2015 as part of the rolling development programme anchored on the LS36-1 production.

Primeline Completes LS30-3-1 Well

Primeline Energy Holdings Inc. (“Primeline” or the “Company”) (TSXV: PEH) today announced that drilling operations of the LS30-3-1 well have been completed without discovering hydrocarbons LS30-3-1 is located approximately 20km north of the LS36-1 gas field platform and was targeting a large channel sand prospect as part of Primeline’s two well exploration drilling programme for 2015. The well spudded on November 13. When the well reached the planned total depth of 1800m, Primeline decided to deepen the well, drilling to a total depth of 2000m on November 27 with electronic log data being collected during November 27-30. The analysis of the results shows that whilst the well encountered three sets of very good sandstone reservoir sequences as predicted, unfortunately there was no oil or gas accumulation in those sandstones. The LS30-3-1 has thus been declared as a dry well and the plug and abandon operation is now ongoing before the rig is released. Primeline will conduct a careful post well evaluation of the results of the LS23-1-1 and LS30-3-1 wells in the coming months in order to formulate the next stage of the exploration programme in the remainder of the 5,877sq km of Block 33/07.

COSL Completed a High-quality Workover Integrated Operation with a Semi-submersible Rig

China Oilfield Services Limited (“COSL” or the “Company”), has smoothly completed its first workover integrated operation with a semi-submersible rig, NH5 of the Company, in South China Sea waters. There were huge challenges for this workover operation stemming from the swinging trunk of the semi-submersible rig due to the winter monsoon in South China Sea. Guided by excellent environmental protection concepts, NH5 developed appropriate measures and cooperated closely with the partners and tackled difficulties in precision positioning of the equipment and seamless matching of the operation procedures. NH5 completed this workover operation smoothly, thereby established a solid foundation for the timely resumption of production of the well for the client. With this outstanding operation, NH5 has not only helped COSL generate revenue, but also won full recognition and endorsement with relevant praise from the client.

Hai Yang Shi You 937 Won a 180-day Renewal Drilling Contract in Indonesia

Recently, Hai Yang Shi You 937 was awarded a 180-day contract for renewal of drilling operations with SAKA, upon completion of the 2015-year drilling contract with SAKA.

Rosneft commences drilling in the Sea of Okhotsk

JV of Rosneft and Statoil ASA started drilling the exploration well in the Sea of Okhotsk. The signal to begin drilling was given by the Rosneft Chairman of the Management Board Igor Sechin during the work at the rig Nanhai-9. "Implementation of the offshore projects in upstream is one of the Company’s most important strategic goals, a contribution to the whole oil and gas industry. Rosneft is the country’s only company that continues the work on new projects offshore in accordance with its license obligations despite the complicated external environment. We are pleased to commence the key stage of project within the scope of the long-term cooperation with our partner – Statoil – the drilling of exploration wells in the Sea of Okhotsk" - Igor Sechin said. Well Ulberikanskaya-1 will be drilled at the prospect of the same name in Lisiansky license area one year ahead of the license obligations. The distance from the port of Magadan to the well is about 420 km. The second well of Rosneft and Statoil project will be also drilled during the 2016 season within Magadan-1 section in the Sea of Okhotsk. Semi-submersible rig Nanhai-9 was delivered by China Oilfield Services Limited (COSL) which signed a contract for drilling with the joint venture of Rosneft and Statoil in September 2015. The rig was transported through the South China Sea, the East China Sea, the Sea of Japan and the Sea of Okhotsk; to reach the point of drilling, the rig traveled a long way of more than 4600 nautical miles. Nanhai-9 was specially modified for the drilling project in the Sea of Okhotsk: in particular, a comprehensive preparation of the rig was implemented to enable its operation at low ambient temperatures, wind protection was installed on the perimeter of the drilling site, a range of services were held to ensure environmentally safe operations. The Sea of Okhotsk lies south of the Arctic zone boundary, the sea depth in both drilling sites is less than 150 m.

HYSY 982 Launched in China

Dalian Shipbuilding Industry Offshore has launched COSL's newbuild semisub rig, the Hai Yang Shi You 982. The rig is slated for delivery in Q4 this year / Q1 next year. The rig's work programme is yet to be announced. The HYSY 982 was ordered in October 2013 and is capable of drilling in 1,500 meters of water.

PTTEP hire COSLPower for Thailand drilling campaign

PTTEP has hired the COSLPower jackup rig from China Offshore Services Limited’s (COSL) subsidiary COSL Drilling Pan-Pacific for an 18 month drilling contract in Thailand. The contract is anticipated to begin in April 2013, following the unit’s mobilisation to Thailand. The unit was previously working for Saudi Aramco under charter from the Arabian Drilling Company who had named the unit the ‘AD 38’.

COSL signs contracts for three newbuild drilling units

China Oilfield Services Limited (COSL) has announced that it has signed contracts for the construction of three new drilling units and when constructed will boost the operators rig fleet to over 40 drilling rigs. COSL signed contracts with two separate shipyards in China for the delivery of the units, which consist of two jackup rigs (‘HYSY943’ and ‘HYSY944’) and a single semisubmersible unit (‘HYSY982’). Dalian Shipbuilding Industry Offshore Co Ltd (DSIC Offshore) will construct the ‘Hai Yang Shi You 982’ semisub and the ‘Hai Yang Shi You 943’ jackup which are due for delivery in August 2016 and September 2015 respectively. Whilst the additional ‘Hai Yang Shi You 944’ jackup rig is to be constructed by China Merchants Heavy Industry (Shenzen) at the company’s yard on Mazou Island with delivery expected to be in October 2015.

'Nanhai IX' begins South China Sea operations for CNOOC

China Oilfield Services Limited (COSL) has announced that the drilling rig operator’s newly restored semisubmersible unit the ‘Nanhai IX’, has commenced operations for CNOOC Ltd in the South China Sea. The unit underwent 53 days of restorative maintenance in a Chinese shipyard after being moved to the country from Malaysia, following COSL’s purchase of the unit from Transocean in August 2013. The ‘Nanhai IX’ is capable of drilling in 5,300 feet of water down to a maximum depth of 25,000 feet and the addition of the unit to COSL’s fleet fits in with the operator’s current strategy of expanding the number of floating rigs it has for drilling operations in the South China Sea.

Viking Offshore & Marine order newbuild jackup to mark entry into offshore rig market

Viking Offshore & Marine Ltd, a Singapore based offshore contractor has announced its intention to enter the offshore drilling rig market by placing an order for a newbuild jackup rig at China Merchant Heavy Industries (CMHI) shipyard in Shenzen, China. The newbuild order is for a Gusto MSC CJ46-X-100-D designed jackup rig, which is expected to cost a total of US$180 million to construct with delivery due in early 2016. Viking has teamed up with Chan Kwan Bian and Tan Boy Tee in order to bring some rig building knowledge to the project as the two individuals were previously the co-founders of Labroy Marine which they sold to Dubai Drydocks World in 2008. Viking plans to charter the unit to some of its existing clients in South East Asia upon delivery or alternatively could look to resell the unit.

'COSLHunter' heads to Gulf of Mexico for Pemex Contract

China Oilfield Services Limited (COSL) has taken delivery of its newbuild ‘COSLHunter’ jackup rig. The ‘COSLHunter’ was delivered by China Merchants Heavy Industry Company (CMHI) and constructed at the CMHI’s shipyard in Shenzen, China. The unit is a Gusto MSC CJ46 jackup and upon delivery is in the process of being mobilised to Mexico where it has been chartered by Pemex for five and a half years. COSL purchased the ‘COSLHunter’ alongside its sister unit the ‘COSLGift’ from the Falcon Energy Group in August 2013

'COSLGift' jackup delivered from yard and enroute to South East Asia contract

China Oilfield Services Limited (COSL) has announced that 'COSLGift', the jack-up rig newly acquired by COSL has completed construction, been delivered and set sail to Southeast Asia to perform operations there. 'COSLGift', acquired in August 2013, is a high-end jack-up rig of the same model as 'COSLHunter' which was delivered in early December 2013. This is among one of world's mainstream jack-up rig models. 'COSLGift' is capable of operating at water depths of 375 feet and perform drilling operations at depths of up to a maximum of 30,000 feet, with maximum persons count on board at 124 crew members and a variable load of 3,500 tonnes. It sets sail to Southeast Asia and is expected to start operation in mid-to-late January 2014, while its sister 'COSLHunter' had been towed to Gulf of Mexico to perform operation in early December 2013.

LUNDIN PETROLEUM SPUDS EXPLORATION WELL MINDOU MARINE-1 ONCONGO BRAZZAVILLE MARINE XI LICENCE

Lundin Petroleum AB (Lundin Petroleum) is pleased to announce that drilling of the exploration well Mindou Marine-1, located offshore in Block Marine XI Congo-Brazzaville, has commenced. The planned depth is approximately 3400 metres below meansea level and the well will be drilled by using the semi-submersible drillingrig ENSCO 5003. The drilling operation is expected to take 50 days. The well is targeting a pre-salt Toca formation carbonatereservoir within a combination structural and stratigraphic trap. This wellwill fulfill the Phase II drilling commitment on the licence and is the firstof a two to three well programme on blocks Marine XI and XIV. Lundin Petroleum has an 18.75 percent working interest inthe licence which is operated by SOCO International.

EXPLORATION WELL MINDOU MARINE-1 ON CONGO (BRAZZAVILLE) MARINE XI LICENCE WAS DRY

The exploration well Mindou Marine-1, located offshore in Block Marine XI Congo (Brazzaville), has reached total depth at 3,515 metres. The well did not encounter oil shows in the target pre-salt section. The well will now be logged, and a full geological interpretation of the results will be undertaken. This well fulfilled the Phase II drilling commitment on the licence and is the first of a two to three well programme on Blocks Marine XI and XIV. Lundin Petroleum has an 18.75 percent working interest in the licence which is operated by SOCO International.

Viking SeaTech complete rig positioning for 'Stena Clyde'

Offshore support specialist Viking SeaTech has completed full rig positioning services in Western Australia. The contract becomes the latest in a line of projects successfully carried out by Viking SeaTech Survey. The team positioned a semi-submersible mobile offshore drilling unit for work on the Schooner-1 well, which is located 426km north of Broome and 48km west of Browse Island. Matthew Gordon, General Manager, Viking SeaTech Survey, said: “We were delighted to secure this significant contact. It was a chance for us to lead on a full rig positioning contract from conception to completion. This work came on the back of the recent successful collaboration between Viking SeaTech and a major operator off the northern tip of Australia.” Chris Forde, Managing Director Asia Pacific, Viking SeaTech, said: “We’re proud to have worked with another major operator in Western Australia. It is testament to the relationships we continue to build with our customers. We believe investment in our management systems, our people and our equipment has provided further confidence in Viking SeaTech.” Bill Bayliss, Group Chief Executive, Viking SeaTech, said: “Our ever-growing experience and the strengths of our personnel have brought another contract to completion successfully and safely. However, we will not be complacent. We will continue to grow by winning new business globally.”

'HAI YANG SHI YOU 932' jackup begins operations in Bohai Bay

China Oilfield Services Limited (COSL) has announced that it recently entered into a contract with CNOOC International Financial Leasing CO.,LTD (CNOOC) for the chartering of a new 300-feet jack-up rig – ‘HAI YANG SHI YOU 932’ from CNOOC for a firm period of five years. ‘HAI YANG SHI YOU 932’ is designed to operate at water depths of 300 feet and is capable of drilling into depths of up to 30,000 feet. The rig has arrived at Bohai Bay and commenced drilling services for clients. The chartering of ‘HAI YANG SHI YOU 932’ demonstrates COSL's efforts in enhancing overall competitiveness by three-way approach of “Charter, Buy and Build” to enter into the market quickly as well as mitigate investment risks. The unit was constructed at the CIMIC Raffles shipyard in China and has been built to Friede & Goldman’s Super M2 jackup rig design.

CIMC Raffles delivers new jackup to COSL

CIMC Raffles (CIMC), the Chinese based shipyard group has announced that on the 10th May 2014, it successfully delivered the jackup drilling rig ‘Gulf Driller I’. The unit which is owned by ICBC leasing, will be managed by China Oilfield Services Limited (COSL) and is due to begin mobilising for drilling operations in the Bohai gulf in China. The ‘Gulf Driller I’ is the second drilling jackup delivered to COSL by CIMC in 2014, following delivery of the ‘HAI YANG SHI YOU 932’ jackup earlier in April. The unit is a Friede & Goldman Super M2 designed jackup, capable of operating in water depths up to 300ft whilst drilling to maximum depths of 30,000ft.

COSL confirms charter contract for 'Gulf Driller I'

China Oilfield Services Limited (‘COSL’) has announced that the company has entered into a contract with ICBC Financial Leasing Co. for the chartering of a new 300ft jack-up rig ‘Gulf Driller I’. COSL has chartered the unit for a period of six years. The ‘Gulf Driller I’ jackup is identical to the recently delivered ‘HYSY 932’, which COSL chartered in April 2014. It is designed to operate at water depths of 300 feet and is capable of drilling into depths of up to 30,000 feet. The chartering of ‘Gulf Driller I’ demonstrates COSL's efforts in tapping market opportunities and enhancing its overall competitiveness. The rig is expected to commence operation at Bohai Bay in the third quarter of 2014 after delivery.

Keppel to build US$125 million jackup for Awilco

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has won an order to build a US$125 million jackup rig, WilCraft, from Awilco AS (Awilco), the offshore arm of The Anders Wilhelmsen Group of Norway. WilCraft, the new KFELS B Class rig, is scheduled for delivery in end December 2006. Mr Alexander Krafft, Managing Director of Awilco Drilling, said, “We are expanding our offshore fleet to meet the growing demand for premium jackups. Timing of delivery and the design capabilities of the jackup are most important factors for us. “Awilco has chosen to build the KFELS B Class jackup with Keppel FELS because of their ability to deliver a well built rig with high qualities to meet our needs and requirements.”

Keppel to build a third jackup for Awilco at US$146 million

Keppel FELS Limited (Keppel FELS) has secured a repeat order for a third KFELS B Class jackup rig from Awilco Offshore (Awilco) at US$146 million, via the exercise of an option agreement. The first and second rigs were announced in February and August 2005 respectively. Customised to Awilco’s requirements, the new rig, WilStrike, will be capable of drilling down to 30,000 feet in water depths of up to 400 feet. Delivery for this new rig is expected in second quarter 2009. Work on the first two rigs, WilCraft and WilBoss, is progressing well. Deliveries are expected in fourth quarter 2006 and early 2008 respectively.

Keppel delivers a jackup early to China Oilfield Services

Keppel FELS Limited (Keppel FELS), a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has delivered a new jackup rig to China Oilfield Services Limited (COSL) ahead of schedule and with a clean safety record of 2.5 million manhours without lost-time incident. COSLSTRIKE is the third of three KFELS B Class jackup rigs commissioned by Awilco Offshore ASA (Awilco) prior to the acquisition of Awilco by COSL. The first two rigs were also delivered ahead of schedule in December 2006 and January 2008 respectively.

'HAI YANG SHI YOU 944' construction begins in China

China Oilfield Services Limited (COSL), has announced that construction of its 400-feet jack-up rig ‘HYSY944’, which was ordered in 2013, commenced recently at China Merchants Heavy Industry Company’s shipyard after completing the design and procurement stages. The ‘HYSY944’ is expected to complete construction and be delivered towards the end of 2015. ‘HYSY944’ adopted the CJ50-X120-F hull designed by GUSTO MSC. It is a cutting-edge high-end jackup rig widely recognized in the international market. It is designed to operate at water depths of 400ft and is capable of performing drilling operations at depths of up to 30,000ft. Distinguished from the other existing jack-up rigs, ‘HYSY944’, with its large pile shoe design, meets the operation requirements in some soft-crust regions, where more drilling depths are required. This will help enhance COSL's equipment competitiveness.

Agility Group to provide engineering for 'HAI YANG SHI YOU 982'

Agility Group AS (AG) has entered into an agreement with China Oilfield Services Limited (COSL) to deliver detail engineering for the integration of the drilling package onto their latest drilling semisubmersible unit – ‘Hai Yang Shi You 982’ (HYSY982). "This contract confirms AG China's position in the Chinese market", says Otto Søberg, CEO of Agility Group. "We have now managed to bring our competence related to drilling engineering into the market for newbuild of semisubmersibles in China. We have established good relations with COSL Beijing and with all the major construction yards in China, and we see a great potential in China in the future". AG has been in close cooperation with COSL for a long period. The cooperation started with the design and engineering of the three semis for COSL that today are in operation for Statoil on the Norwegian continental shelf (NCS). This cooperation continued as COSL wanted to build the forth semi for NCS. AG’s design (GG 5000) was chosen by COSL and they placed the building contract of the semi (‘COSL Prospector’) at Yantai CIMC Raffles in China. AG has delivered both the basic and detailed design of the semi, which is planned to be completed in the last quarter of 2014. The latest semi newbuild ordered by COSL is planned for operation in the South China Sea. The Agility Group A5000 design was chosen for this project by COSL at the year-end of 2012. Agility Group started the basic design work for this rig in the beginning of 2013. COSL has later on signed a building contract with Dalian Shipbuilding Industry Offshore Co., Ltd. (DSIC Offshore) and agreed earlier this year to equip the rig with drilling equipment from National Oilwell Varco (NOV). The new contract AG now has signed with COSL has a value of NOK47 million and includes detailed design work for integration of the drilling package from NOV and construction of the semi. AG has in addition agreed a scope of work for DSIC of app. NOK20 million. The work will be performed by AG’s Shanghai office. A smaller senior engineering team in Sandefjord will ensure experience transfer from previous similar projects delivered by Agility Group to drilling floaters worldwide. AG China Ltd. has during the last three years had a very positive development, and shows today a profitable growth. The company is ISO-certified by DNV and works fully integrated with the rest of the Agility Group organization.

KS Drilling sells newbuild 'KS Orient Star 1'

KS Energy Limited (KS) has announced that a subsidiary of KS Drilling Pte Ltd (KS Drilling), KS Rig Invest Three Ltd., has agreed to sell the under construction ‘KS Orient Star 1’ jackup rig for a cash consideration of USD84.88 million. The unit has been sold on an “as-is, where-is basis”. The unit which was ordered by KS Drilling in May 2011, is due to be delivered in Q3 2014 from China Ocean Shipping Co’s (COSCO) Nantong shipyard in China. The unit has been built to LeTourneau’s Workhorse(R) rig design and can operate in max water depths of up to 400ft. The name of the purchaser was not released by KS.

Drill rig successfully secured for Pryderi-1 well

IPB Petroleum is pleased to advise that the WA-424-P Joint Venture (IPB 75%, CalEnergy 25%, and Operator) has achieved the very important milestone of securing the Stena–Clyde semi-submersible drill rig for its upcoming Pryderi-1 exploration well. Based on contracted terms and the current rig schedule, IPB Petroleum estimates that the Pryderi-1 well will spud during October 2014. With the drill rig successfully secured the Operator now intends to submit an application for a suspension and extension to the WA-424-P permit terms with the National Offshore Petroleum Titles Administrator (“NOPTA”) to allow sufficient time for the drilling and evaluation of the results of this well. The Operator estimates Pryderi-1 to take approximately 11 days drill on a dry hole basis. The Pryderi prospect is estimated by IPB to have High, Best and Low Prospective Resources (100%) of 78 MMbbls, 32 MMbbls, and 12 MMbbls respectively and lies in 75m of water and is located approximately 10 km away from the permit’s existing Gwydion oil discovery.

COSL charters newbuild jackup from ICBC

China Oilfield Services Limited (COSL) announced that it has chartered a 400-feet jack-up rig, ‘Excellence I’, from ICBC Financial Leasing Co., Ltd. under an operating lease, and a naming ceremony for this rig hosted earlier today. ‘Excellence I’ measures 66.71 metres in length and is 67.06 metres in width. It is designed to operate at water depths of 400 feet and is capable of performing drilling operations at depths of up to 35,000 feet. It has been scheduled to commence drilling operations in China waters for clients by July 2014. ‘Excellence I’ is the third jack-up rig COSL has chartered year-to-date, as part of the efforts to meet rapidly growing domestic demand through deployment of external resources. Rigs that were chartered previously, ‘HYSY932’ and ‘Gulf Driller I’, have commenced operation in offshore China market with signing of the operation contracts on April 18th and May 13th respectively. The ‘Excellence I’ is believed to be the jackup formerly known as the ‘KS Orient Star 1’, which KS Drilling announced was sold to an unnamed buyer on the 19th June 2014.

CNPC discovers oil & gas shows in disputed drilling area

CNPC’s drilling and exploration operation named the Zhongjiannan project was smoothly completed on schedule on July 15th with the oil & gas shows found. In accordance with the work procedures of deep-sea petroleum exploration and development, a comprehensive assessment of hydrocarbon horizons is to be implemented based on the geological and analytical data collected through the drilling and exploration operation. Next phase arrangements are subject to the aforesaid comprehensive assessment. CNPC started the drilling of two exploratory wells of Zhongjiannan project on May 2nd this year, and finished the drilling of No.1 exploratory well on May 27th. We started drilling No.2 well on May 28th, and the drilling of this well completed today. The drilling was carried out using the ‘HAI YANG SHI YOU 981’ semisub, run by China Oilfield Services Limited (COSL).

Kongsberg Maritime to deliver technology for Chinese and Korean projects

Kongsberg Maritime's 'Full Picture' solution has been selected by Chinese and Korean shipbuilders for 13 advanced newbuild offshore vessels with a total value of NOK330 million. Dalian Shipbuilding Industry Offshore Co. (DSIC), CIMC Raffles (CIMC), Cosco Shipyard (COSCO) and Hudong Zhonghua Shipyard (HDZ) in China, Samsung Heavy Industries (SHI) and Hyundai Heavy Industries (HHI) in Korea are the shipbuilders that have selected KONGSBERG's 'Full Picture' technology deliveries. The new contracts build on a strong 2013 performance in China and Korea where KONGSBERG was chosen for several advanced vessel newbuildings. Kongsberg Maritime will provide sophisticated integrated Dynamic Positioning (DP), Automation, Navigation and Hydroacoustic positioning. Riser management solutions will be supplied by sister company Kongsberg Oil & Gas Technologies. The delivery is for four advanced Offshore Drilling Units, two advanced Accommodation Units, six LNG vessels and one LNG FSRU with Integrated Automation System. One of the contracts with DSIC is for an advanced semisub Drilling Rig of Agility Group A5000 design (‘HAI YANG SHI YOU 982’), for the major Chinese Drilling Contractor, China Oilfield Services Limited (COSL). This contract is an important project for KONGSBERG, strengthening the company's position in the growing Chinese Drilling market.

COSCO delivers new jackup rig to China Oilfield Services Ltd

The Board of Directors of COSCO Corporation (Singapore) Limited wishes to announce that COSCO (Nantong) Shipyard Co., Ltd (COSCO Nantong), a subsidiary of the Company's 51% owned COSCO Shipyard Group Co., Ltd, has delivered one (1) jack-up rig, ‘KAI XUAN YI HAO’ (Excellence 1), to its Asian buyer. The jackup which was successfully completed on the 30th June 2014, has now been handed over to its operator China Oilfield Services Ltd (COSL). The unit formerly known as the ‘KS Orient Star 1’ was purchased by ICBC Financial Leasing Co.Ltd and chartered for a five year period by COSL.

Falcon Energy sells two Gusto MSC CJ46-X100-D jackups to COSL

The Board of Directors of Falcon Energy Group Limited (Falcon) wishes to announce that its indirect subsidiaries, TS Amber Limited and TS Pearl Limited, have entered into two sale and purchase agreements and two novation agreements with COSL Drilling Power Pte Ltd and COSL Drilling Craft Pte Ltd respectively, to novate their rights and obligations under the shipbuilding contracts relating to the design, construction and delivery of the two Gusto MSC CJ46-X100 jack-up drilling rigs. The novation fee payable by COSL Drilling Power Pte Ltd to TS Amber Limited and COSL Drilling Craft Pte Ltd to TS Pearl Limited (as the case may be) for the novation of each shipbuilding contract was arrived at on a "willing buyer willing seller" basis. Both TS Amber Limited and TS Pearl Limited are wholly-owned by TS Drilling Pte. Ltd. (TS Drilling), an indirect subsidiary of Falcon. TS Drilling is a 70%-owned subsidiary of FTS Derricks Pte. Ltd., which is 65% owned by the Company and 35% owned by Mr Cai Wenxing (a director of the Company).