West Aquarius (Seadrill Partners LLC) (Semisub)

Statoil secures rig for drilling offshore Newfoundland

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14 May 2012

Statoil has reached an agreement to use Seadrill’s West Aquarius deepwater drilling rig for Statoil’s 2012-2013 exploration activities offshore Newfoundland, Canada. “We have ambitious exploration targets offshore Newfoundland, and securing rig capacity is essential for reaching those targets,” says Geir Richardsen, head of Exploration for Statoil in Canada. “We look forward to putting this rig’s capabilities into action.” Starting late 2012, Statoil will begin a three-well drilling program, offshore Newfoundland, including two exploration wells in the Flemish Pass Basin as well as an exploration well in the Jeanne d'Arc Basin. “I am pleased that the company has acquired future rig capacity as exploration activity is a key component of Statoil’s ambitions to become a producing operator offshore Newfoundland,” says Kjell Magnus Myge, head of Procurement for Statoil in Canada. The West Aquarius drilling rig is a sixth generation semi-submersible DP3 vessel built in South Korea in 2009. The vessel can operate in harsh environments up to 3,000 m water depth. The rig has been taken on as an assignment from ExxonMobil Deepwater Rig Limited. Statoil is an international energy company with high ambitions for international growth, and with business operations in 37 countries around the world. Statoil’s North American activities are managed out of two main offices located in Houston, Texas, USA and Calgary, Alberta, Canada. Statoil also has offices in Anchorage, Alaska, Austin, Texas, Stamford, Connecticut , Washington, D.C., Williston, North Dakota, USA and St. John’s, Newfoundland, Canada.

Source: http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/14May_Rig_Newfoundland.aspx


More News for Operator: Seadrill Partners LLC

17 Jan 2013

Tullow Oil exercises 'West Leo' contract option

Seadrill have announced that Tullow Oil has exercised a two year contract option that the company had on the West Leo semi-submersible drilling unit for continued operations in Ghana, at a value of US$450m from May 2016 through to May 2018. The West Leo has worked for Tullow Oil in Ghana since it was delivered to Seadrill and began its current contract in April 2012. The unit is expected to remain in the region whilst it is contracted to the company.

7 May 2013

Seadrill Ltd sells T-15 tender rig to Seadrill Partners LLC

Seadrill has officially sold the tender rig 'T-15' unit to its sister company Seadrill Partners LLC for a total price of US$210m. The transaction is expected to be completed by the end of May 2013 and is being funded by a loan which Seadrill is providing to its partner company. The unit recently begun a five year contract with Chevron in Thailand which will see it continue to be contracted until the end of April 2013.

2 Dec 2013

Seadrill sells two semisubs to Seadrill Partners LLC

Seadrill Ltd (Seadrill) has entered into an agreement with Seadrill Partners LLC to sell two working semisubmersible drilling rigs to the recently spun off rig manager. Seadrill Partners LLC will purchase the ‘West Leo’ and ‘West Sirius’ units from Seadrill through a series of purchases, contributions and assumption of debts associated with the two rigs. The implied purchase price of the ‘West Leo’ is US$1.25 billion, whilst the ‘West Sirius’ implied cost is US$1.035 billion. Both assets have good long term contracts attached with the ‘West Leo’ currently contracted to Tullow Oil in Ghana until 2018 and the ‘West Sirius’ is working in the US GoM for BP and is contracted through to July 2019.

10 Oct 2013

'West Aquarius' awarded 18 month contract extension

Seadrill’s ‘West Aquarius’ semisub has been awarded an 18 month contract extension by ExxonMobil for continued drilling operations in Eastern Canada. The contract has been awarded on the back of ExxonMobil and Seadrill reaching an agreement over a non-payment of rates for the unit over a 37 day period at the beginning of its current contract. The rigs delivery was delayed due to extra time being required to complete modifications and repairs before the operator could receive authorisation from Canadian authorities to begin drilling operations. The contract extension is expected to total US$337 million and means the ‘West Aquarius’ is now contracted through to April 2017.

18 Dec 2013

Paon-2A well result offshore Côte d’Ivoire

Tullow Oil plc (Tullow) announces that the Paon-2A appraisal well in the CI-103 licence offshore Côte d’Ivoire has determined the down-dip extent of the Paon oil accumulation. The well encountered the water below the oil accumulation discovered at the Paon-1X well and pressure logging has located the likely oil water contact. To minimise the number of appraisal wells, Paon-2A was located 15km south west and approximately 370 metres down-dip of the Autruche light oil discovery made by the Paon-1X well in 2012. The well encountered Upper Cretaceous reservoir sandstones which were water bearing at this location. Pressure data from the Autruche age reservoirs intersected in Paon-2A indicate that the Autruche oil accumulation between this well and Paon-1X has a hydrocarbon column of at least 230 metres. Following completion of logging operations the well will be plugged and abandoned. The Seadrill West Leo dynamically positioned semi-submersible drilled Paon-2A to a final depth of 5,380 metres in water depths of 2,366 metres. Tullow (15% plus a 15% carried interest) operates the CI-103 licence and is partnered by Anadarko Petroleum (55%) and the Societé Nationale d’Opérations Pétrolières de Côte D’Ivoire (Petroci) (5% plus a 10% carried interest).

30 May 2013

Calao-1X exploration well encounters non-commercial condensate in Côte d’Ivoire

Tullow Oil plc (Tullow) announces that the Calao-1X exploration well in the CI-103 licence offshore Côte d’Ivoire, where Tullow is operator and has a 30% carried interest, has encountered thin condensate/gas bearing reservoirs in an Upper Cretaceous deepwater channel system. The well is the second deepwater exploration well drilled in the CI-103 licence and targeted an Upper Cretaceous channel system northwest of the Paon-1X oil discovery, which was drilled in 2012. Good quality reservoir sandstones were found in this objective but they were water bearing at this location. Approximately 5m of condensate/gas bearing sandstones were found in a deeper objective. The well was then sidetracked, targeting a better developed reservoir unit down-dip. Good quality water bearing sandstones were intersected at that level in the sidetrack. Pressure data indicates that this zone may be in communication with the condensate encountered in the original Calao-1X well. Following completion of logging operations the well will be plugged and abandoned. The Seadrill West Leo dynamically positioned semi-submersible drilled Calao-1X to a final depth of 4,570 metres in water depths of 1,906 metres. The Sidetrack was then drilled to a final depth of 4600m below sea level. Tullow (30% carried interest) operates the CI-103 licence and is partnered by Anadarko Petroleum (55%) and the Societé Nationale d’Opérations Pétrolières de Côte D’Ivoire (Petroci) (5% plus a 10% carried interest).

19 Nov 2013

BP adds two drilling rigs in the deepwater Gulf of Mexico

BP today announced it has added two drilling rigs to the deepwater Gulf of Mexico, bringing its fleet to a company record nine rigs as it continues to develop its strong portfolio of assets in the key U.S. offshore basin. One of the rigs is a new ultra-deepwater drillship known as the West Auriga that is under long-term contract to BP from Seadrill Ltd, a leading international offshore drilling contractor. The vessel, capable of operating in up to 12,000 feet of water, has begun development drilling work at BP’s Thunder Horse field. The other is a reconstructed drilling rig on BP’s Mad Dog oil and gas production platform. It replaces the original rig on the platform that was badly damaged and left inoperable by Hurricane Ike in 2008. With the new, state-of-the art rig, the platform recently resumed development drilling at the massive Mad Dog field complex. “The addition of these two new rigs reflects the vital importance of the deepwater Gulf of Mexico to the future of BP,” said Richard Morrison, Regional President of BP’s Gulf of Mexico business. “It also clearly demonstrates BP’s commitment to the American economy and U.S. energy security.” BP currently anticipates investing on average at least $4 billion in the Gulf of Mexico each year for the next decade. The company plans to concentrate future activity and investment in the Gulf on growth opportunities around its four major operated production hubs – Thunder Horse, Na Kika, Atlantis and Mad Dog – and three non-operated production hubs – Mars, Ursa and Great White – in the deepwater, as well as on significant exploration and appraisal opportunities in the Paleogene and elsewhere. BP is also advancing a strong pipeline of future development projects in the deepwater Gulf. In April, the company started up the Atlantis North expansion, the first of seven additional wells to be tied back to the existing Atlantis platform. At Na Kika, another field expansion is planned, following the successful startup last year of the Galapagos development, a subsea tieback to the Na Kika production facility. BP is also pursuing plans for a second phase of the Mad Dog field.

11 Mar 2014

Seadrill agrees to sell 'West Auriga' drillship to Seadrill Partners LLC

Seadrill Limited (Seadrill) announced today that it has entered into an agreement with Seadrill Partners LLC pursuant to which Seadrill will sell to Seadrill Capricorn Holdings LLC, Seadrill Partners' 51% owned subsidiary ("Capricorn Holdings"), all of the ownership interests in the entities that own and operate the drillship, the ‘West Auriga’. Seadrill will own the remaining 49% interest in Capricorn Holdings. The acquisition of the ‘West Auriga’ drillship, which is expected to close within 30 days, will be accomplished through a series of purchases, contributions and assumptions of debt and is subject to the satisfaction of certain closing conditions.The ‘West Auriga’ is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard to its current customer, BP, in October 2013. The drillship is expected to carry out operations in the U.S. Gulf of Mexico until the end of its contract in October 2020 at a dayrate of US$565,000 per day, excluding approximately $37,500 per day payable by the customer over the term of the contract relating to mobilization, variation orders and other special and standby rates. The implied sale price of the drillship is US$1.24 billion, less US$443.1 million outstanding under the facility related to the ‘West Auriga’. In addition, Capricorn Holdings intends to issue a US$100 million zero coupon limited recourse discount note to the Company that matures in September 2015. Upon maturity of such note, Seadrill Capricorn Holdings LLC will repay US$103.7 million to the Seadrill. Based on the Seadrill Partners' 51% ownership of Seadrill Capricorn Holdings, its portion of the net purchase price after debt will be US$355.4 million.

12 Dec 2009

Keppel FELS to deliver 6th proprietary tender drilling rig to Seadrill

Keppel FELS Limited (Keppel FELS) is on track to deliver West Vencedor, the sixth of seven KFELS semisubmersible drilling tenders (SSDT) to Seadrill Limited (Seadrill) before the end of 2009. The completion of this project on time and within budget, will top out a record year of 13 rig deliveries for Keppel FELS. West Vencedor is built to Keppel’s proven KFELS SSDT 3600E design which was conferred the ASEAN outstanding engineering achievement award in December 2009 for its eco-friendly features and sustainable operations. The vessel was named at Keppel FELS by Lady Sponsor, Mrs Maria Luisa Breisacher-Moshiri, spouse of Mr Alireza Moshiri, President, Chevron Africa and Latin America Exploration and Production Company. West Vencedor is expected to commence development drilling operations offshore Angola under a five-year contract with Cabinda Gulf Oil Company Ltd, a subsidiary of Chevron Corporation, in the first quarter of 2010.

19 Jun 2013

Statoil makes another oil find offshore Newfoundland

Statoil has made a discovery of light, high-quality oil in the Flemish Pass Basin, offshore Newfoundland. Oil was encountered while drilling the Harpoon prospect (EL 1112), located approximately 500 kilometres north-east of St. John's, Newfoundland and Labrador, Canada. "While it is still too early to determine Harpoon's resource potential at this time, this is very encouraging for the area and especially for the Bay du Nord well planned for later this year," says Erik Finnstrom, senior vice president for Exploration North America in Statoil. Finnstrom explains that Statoil's exploration strategy to test high-impact oil prospects in the Flemish Pass Basin is on target and that the Harpoon results will contribute to a greater understanding of the area. "We anticipate there will be further appraisal drilling to mature this discovery in the future," states Finnstrom. "We will continue to build this area as a core exploration region for Statoil." The Harpoon discovery was drilled by the semi-submersible rig West Aquarius, in approximately 1,100 metres of water. Harpoon is located about 10 kilometres south-east of Statoil's Mizzen discovery. The Mizzen discovery is estimated to hold between 100-200 million barrels of oil. As part of its 2013 three-well exploration program offshore Newfoundland, Statoil is currently drilling its Federation prospect, located in the Jeanne d'Arc Basin. The company will then return to the Flemish Pass Basin to drill the Bay du Nord prospect, which is located south-west of the Harpoon and Mizzen discoveries. Statoil is the operator of Harpoon with a 65 percent interest. Husky Energy is a 35 percent partner.

27 Aug 2013

New oil discovery offshore Canada

Statoil has made a third discovery of crude oil in the Flemish Pass Basin, offshore Newfoundland. The discovery was made on the Bay du Nord prospect (EL1112), located approximately 500 kilometres northeast of St. John’s, Newfoundland and Labrador, Canada. This discovery is the second discovery for Statoil offshore Newfoundland this year. In June, a discovery was made at the Harpoon prospect, which is located approximately 10 kilometres from Bay du Nord. “The success of Bay du Nord is the result of an ambitious and targeted drilling campaign in the Flemish Pass Basin,” says Statoil Exploration executive vice president Tim Dodson. “This discovery is very encouraging.” Dodson explains that as the volumes of both the Bay du Nord and Harpoon wells continue to be evaluated, Statoil is developing a greater understanding of the geology and potential of the basin. “The Flemish Pass Basin is a strategic part of Statoil’s global exploration portfolio. We are now planning to return to the area for further appraisal drilling in the future,” says Dodson. The Bay du Nord and Harpoon wells were drilled by the semi-submersible rig West Aquarius, both in approximately 1,100 metres of water. Bay du Nord is located about 20 kilometres south of Statoil’s Mizzen discovery. The Mizzen discovery, announced in 2010, is estimated to hold between 100-200 million barrels of oil. Statoil is the operator of Bay du Nord and Harpoon with a 65% interest. Husky Energy has a 35% interest.

4 Nov 2014

Seadrill sells drillship to MLP Seadrill Partners

Seadrill Limited (Seadrill) announced today that it has entered into an agreement with Seadrill Partners pursuant to which the Company will sell to Seadrill Capricorn Holdings LLC, Seadrill Partners' 51% owned subsidiary (Capricorn Holdings), all of the ownership interests in the entities that own and operate the drillship, the West Vela (the Vela Acquisition). The Vela Acquisition, which is expected to close within 3 days, will be accomplished through a series of purchases, contributions and assumption of debt. The West Vela is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard to its current customer, BP, in November 2013. The West Vela is expected to carry out operations in the U.S. Gulf of Mexico until the end of its contract in November 2020. The implied purchase price of the Vela Acquisition is USD900 million, less USD433 million of debt outstanding under the existing facility financing the West Vela. Based on Seadrill Partners' 51% ownership of Capricorn Holdings, its portion of the net purchase price after debt will be USD238 million.

30 Dec 2014

Seadrill purchases 'West Polaris' drillship

Seadrill Limited ("Seadrill" ) has announced it has exercised a purchase option for the West Polaris, a 6th generation Ultra-Deepwater drillship, from Ship Finance International Limited ("Ship Finance"). The West Polaris was acquired by Ship Finance in 2008 and subsequently bareboat chartered to Seadrill with purchase options commencing in 2012. The purchase option price is USD456 million and total consideration payable to Ship Finance is USD108 million. The transaction will be executed as a purchase of shares in Ship Finance's asset owning subsidiary SFL West Polaris Limited, which is currently a consolidated entity in Seadrill. Seadrill does not expect any immediate material impact to its financial statements as a result of this transaction. The West Polaris is currently on a long-term charter with ExxonMobil in Angola, where it is contracted until February 2018.

30 Mar 2015

BP issues termination notice for 'West Sirius'

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

17 Jun 2015

Seadrill sells 'West Polaris' to Seadrill Partners LLC

Seadrill Limited ("Seadrill") announced today that it has entered into an agreement with Seadrill Operating LP ("Seadrill Operating"), the 58% owned subsidiary of Seadrill Partners LLC ("Seadrill Partners"), pursuant to which Seadrill Operating will acquire all of the shares of Seadrill Polaris Ltd. ("Seadrill Polaris"), the entity that owns and operates the drillship, the West Polaris (the "Polaris Acquisition") from Seadrill. The Polaris Acquisition is expected to close within 7 days. The West Polaris is a 6th generation, dynamically positioned drillship delivered from the Samsung shipyard in 2008. The West Polaris is expected to carry out operations in Angola until the end of its contract with ExxonMobil in March 2018. The total consideration for the Polaris Acquisition is comprised of USD204 million in cash and USD336 million of debt outstanding under the existing facility financing the West Polaris. Seadrill Operating will fund the balance of the purchase price with a seller's credit of USD50 million due in 2021 that carries an interest rate of 6.5% per annum. Based on the assumed present value of the seller's credit, excess dayrate to be paid to the Company under the current drilling contract and assumed excess dayrate to be paid to the Company following the conclusion of the current drilling contract, the board of directors of the Company believes that the total value proposition of the Polaris Acquisition for Seadrill is approximately USD750 million. The West Polaris is currently contracted with ExxonMobil on a daily rate of USD653,000. Under the terms of the acquisition agreement, Seadrill Polaris has agreed to pay Seadrill any dayrate it receives in excess of USD450,000 per day, adjusted for daily utilization, for the remainder of the ExxonMobil contract. Assuming an average economic utilization of 95%, Seadrill will receive approximately USD60 million in cash per year from the current ExxonMobil contract. Additionally, Seadrill Polaris has agreed to pay Seadrill 50% of any dayrate above USD450,000 per day, adjusted for daily utilization, after the conclusion of the existing contract until 2025. As part of the acquisition agreement, Seadrill Operating's obligation to repay the USD50 million seller's credit due to Seadrill will be reduced if the average contracted dayrate under any replacement contract is below USD450,000 until the seller's credit's maturity in 2021. The amount of seller's credit due will be reduced until Seadrill Partners' effective dayrate is USD450,000 or until the seller's credit is reduced to zero. Should the average dayrate of the replacement contract be above USD450,000, the entire USD50 million seller's credit must be paid to Seadrill upon maturity of the seller's credit in 2021. By agreeing to sell the West Polaris to Seadrill Partners, Seadrill is able to realize USD204 million in cash upon closing of the transaction while retaining up to USD203,000 per day in revenues under the current drilling contract without the associated operating expense. Additionally, following the conclusion of the current contract, Seadrill will continue to have a degree of exposure to future dayrates by sharing revenues above USD450,000 per day with Seadrill Partners, again without the associated operating expense. The Board is pleased to announce a transaction that serves to realize value from multiple sources in addition to the sale price, while at the same time supporting an important associated company in its goals to increase distribution coverage, asset diversification and revenue backlog.

13 May 2016

SDLP - Termination of the West Capella

Seadrill Partners LLC ("the Company") has received a notice of termination from its current operator for the contract for the West Capella. In accordance with the cancellation for convenience provisions in the West Capella contract, Seadrill Partners will receive a payment of approximately $125 million in two equal installments, the first in the second quarter of 2016 and the second in the first quarter of 2017, plus other direct costs incurred as a result of the early termination. The West Capella is currently being marketed for new work and is expected to be in Tenerife during its idle period.

26 Apr 2017

West Capricorn to Return to Service

BP has notified Seadrill Partners to prepare the West Capricorn for a return to operational service. The West Capricorn semisub was down-manned and placed on extended standby in May 2016. The rig will remain on standby rate until July 1st, 2017. The rig is currently located in the US Gulf. Before being laid-up the rig was working on BP's Constellation (formerly Hopkins) discovery.

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