Titanium Explorer (Vantage Drilling Company) (Drillship)

Vantage respond to reports surrounding 'Titanium Explorer' contract

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03 July 2015

Vantage Drilling Company ("Vantage") has challenged reports alleging that the arrest of a former Petrobras International Director was tied in some way to the Company's contract with Petrobras for the Titanium Explorer. "Several hundred contracts were signed by this former Director, which in Vantage's case, was after the parent board of Petrobras had approved the contract," said Paul Bragg, Chairman and CEO of Vantage. Vantage is fully performing under the contract and found no evidence that would substantiate any allegation of improper activity by Vantage in connection with the award of the contract. Paul Bragg additionally commented, "Vantage has always been committed to conducting itself in accordance with the highest standards of business ethics. We do not believe that any inappropriate act was committed by any personnel associated with Vantage. Although we are disappointed that recent news reports have suggested that a former Petrobras International Director was arrested on the suspicion of some form of wrongdoing associated with Vantage, as well as with other companies contracted to Petrobras, we are confident that any suggestion is without merit as it relates to Vantage."

Source: http://www.marketwired.com/press-release/-2035257.htm

More News for Operator: Vantage Drilling Company

22 Jan 2013

Vantage Drilling newbuild drillship awarded two year contract

Vantage Drilling Company today announced that they have secured a lucrative US$468 million contract for their newbuild ‘Tungsten Explorer’ drillship, which is still under construction at Daewoo’s shipyard in South Korea. The contract is for a firm period of 2 years with an as yet unreleased operator for drilling operations in West Africa, and comes with four 6-month options for extension of the contract. The unit is due for delivery from the shipyard in Q2 2013, and Vantage hope to gain additional work for the unit before it begins this contract.

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.

10 Jan 2014

'Palladium Explorer' drillship construction terminated

Vantage Drilling Company (Vantage) has announced that Sigma Drilling Ltd (Sigma) has terminated the construction of its ‘Palladium Explorer’ drillship project with STX Offshore & Shipbuilding Co Ltd (STX). STX notified Sigma in August 2013 of financial difficulties that the shipyard was having and that it was looking to restructure its operations and finances. In response to STX’s announcement Sigma attempted to negotiate the movement of the construction of the drillship to a new shipyard however, due to a lack of progress with negotiations, Sigma cancelled the construction contract with STX on the 8th January 2014.

18 Feb 2014

'Titanium Explorer' drillship commences drilling of the Padouck-1 exploration well

Ophir Energy plc (“Ophir” or “the Company”) announces that drilling operations have now commenced on the Padouck Deep-1 well on the Ntsina Block, offshore Gabon utilising the Vantage Titanium Explorer drillship. Ophir has a 40%* operated interest in the Block. Padouck Deep-1 is the first well targeting the pre-salt play offshore in the North Gabon basin although the play is regionally extensive elsewhere in Gabon and West Africa. The prospect is estimated to contain Pmean recoverable resources of c.1.0bnbbls with significant follow-on potential. The well is located in a water depth of approximately 835m and has a planned Total Depth of 3,500m True Vertical Depth Sub Sea. Operations are expected to take approximately 45 days. Ophir’s share of the well cost is largely carried by partners Petrobras and OMV.

19 Mar 2014

Ophir comes up dry with Padouck Deep-1 well in Gabon

Ophir Energy plc (“Ophir” or “the Company”) announces that drilling operations have now concluded on the Padouck Deep-1 well in the Ntsina Block offshore Gabon. Ophir has a 50%* net operated interest. The well was drilled by Vantage Drillling's 'Titanium Explorer' drillship to a depth of 3,297m TVDSS targeting the Cretaceous Gamba and Coniquet/Dentale sands in the pre-salt section. Thicker than expected, good quality Gamba and Coniquet/Dentale reservoir sands were encountered. There were no significant hydrocarbon shows in the targeted reservoirs, however, minor shows were interpreted at shallower intervals providing evidence of a working hydrocarbon system in the offshore North Gabon Basin. In addition, well log responses in the deeper pre-salt stratigraphy are similar to those observed onshore Gabon where they are indicative of an interbedded pre-salt source and reservoir system. Full analysis and interpretation of the log data is ongoing. The key pre-drill risk was that of seal and trap integrity. The lack of the anticipated thin salt drape over this high relief prospect and the lack of sealing shales within the targeted reservoirs appear to be a cause of the prospect’s failure. Vantage Drilling's 'Titanium Explorer' will now move to the Gnondo Block to drill the Affanga Deep prospect which has the potential to hold mean recoverable resources of 170mmb and to derisk several follow on prospects which could provide the basis for a hub development. The rig will then return to target the Okala pre-salt prospect on the Mbeli Block.

27 Mar 2014

Ophir releases Affanga Deep-1 well update

The Affanga Deep-1 well being drilled by the Vantage 'Titanium Explorer' drillship is targeting an extension to the proven Ogooué Delta play offshore Gabon with gross mean pre-drill recoverable resource estimates of 170mmbbl. Success would derisk several follow-on prospects which could be integrated into a hub development. The well commenced operations on 22 March 2014 and has a planned Total Depth of approximately 4,500m True Vertical Depth Sub Sea (“TVDSS”). It is expected to take approximately 35 days to complete. Ophir has a 70%* operated interest in the Block. On completion of the well, the rig will move to the Mbeli Block in Gabon to drill the Okala pre-salt prospect.

27 May 2014

Affanga disappoints for Ophir in Gabon

Ophir Energy plc (Ophir) announces that drilling operations have now concluded on the Affanga Deep-1 well in the Gnondo Block offshore Gabon. Ophir has a 100%* operated interest in the Block. The well was drilled by Vantage Drilling’s ‘Titanium Explorer’ drillship to a depth of 4,240m TVDSS and was targeting a number of reservoir intervals of Turnonian and Cenomanian age. The well encountered thinner than expected sandstone sections with poor reservoir characteristics. Gas and indications of liquids were encountered during drilling but significant hydrocarbon shows were not encountered in the target formations. Cuttings have confirmed the presence of a Cenomanian oil prone source rock which may have positive implications for the prospectivity of the wider Ogooué Delta outboard play and for the Deepwater play to the west of this location. Log and cuttings analysis is continuing. The rig will now move to spud the pre-salt Okala prospect on the Mbeli Block. The Okala-1 well is expected to take approximately 40 days to complete. *OMV farm-in for a 30% net interest is subject to Government approval

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.

14 May 2012

Statoil secures rig for drilling offshore Newfoundland

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.

26 Jun 2014

Ophir comes up dry with latest well in Gabon

Ophir Energy plc (Ophir) has announced that drilling operations have now concluded on the Okala-1 well in the Mbeli Block offshore Gabon. Ophir has a 50%* net operated interest. The well was drilled by Vantage Drilling’s ‘Titanium Explorer’ drillship to a depth of 4,229m MD targeting Cretaceous sands in the pre-salt section. The well encountered a thick section of Aptian salt as prognosed and well developed sandstones in the Gamba and Dentale formations. However, there were no significant hydrocarbon shows in the target reservoirs. Ophir’s share of the Okala-1 well costs was partially covered by carries from the Company’s joint venture partners. The ‘Titanium Explorer’ drillship will now move to Equatorial Guinea to begin a campaign of three exploration and appraisal wells on Block R. *OMV farm-in for a 10% net interest is subject to Government approval

27 Aug 2014

Ophir's Tonel North-1 well has poor result

Ophir Energy plc (Ophir) is pleased to provide an update on its operations in Equatorial Guinea. The Tonel North-1 appraisal well has been completed on Block R, Equatorial Guinea. The Tonel North-1 well was drilled approximately 5km north-east of the original Tonel-1 discovery well. The well encountered gas pay combined in the lower target sands but the upper sands appear to be low gas-saturation. Analysis of the well data is ongoing. The result is expected to marginally reduce the discovered volumes in the Tonel field but will not impact the commerciality of the base case 2.5mmtpa FLNG project. The ‘Titanium Explorer’ drillship has now moved to complete the Silenus East-1 exploration well which is targeting ca.420bcf of low-risk mean prospective gas resource as a primary target and will be deepened to test a secondary, high-impact but high-risk oil target that on current mapping could be a potentially extensive play across the Block. The top hole of Silenus has already been previously drilled and the well is expected to complete within two weeks. There are several analogous shallow gas prospects to Silenus East in the Thrust Belt play sharing the same Direct Hydrocarbon Indicators. If successful, the well would de-risk ca.1.2TCF of upside (including Silenus East volumes) in the immediate area that could provide an additional production hub for the FLNG development.

16 Sep 2014

Ophir hits gas with Silenus East-1 well in Equatorial Guinea

Ophir Energy plc (Ophir) announces that the Silenus East-1 well in Block R, Equatorial Guinea has resulted in a new gas discovery. The Silenus East-1 well was drilled by the Vantage ‘Titanium Explorer’ drillship within the thrust belt area of Block R. A 67m gross gas column was encountered in the primary target with high quality reservoir in line with pre-drill expectations. The well was deepened to test a secondary high risk oil target and encountered high quality, but water-wet, reservoirs with weak oil shows. This play remains of interest to Ophir and will be further evaluated on the Block. The drillship has now moved to complete the Fortuna-2 appraisal well, where Ophir will conduct the first flow test in Block R. The Silenus East-1 well has discovered an estimated mean recoverable 405bcf of gas from the upper and deeper reservoirs and has significantly de-risked a family of similar surrounding prospects such that the total mean recoverable gas in the broader Silenus area including this discovery is now estimated at c.1.2TCF. Following the Silenus East-1 and Tonel North-1 well results, the total estimated mean recoverable resources for Block R, including the discoveries and adjacent derisked volumes, are now 3.4TCF, comprising 1.3TCF from the Fortuna Complex, 1.2TCF from the Silenus Complex, 0.5TCF from Tonel and 0.4TCF from the other smaller discoveries.

10 Oct 2014

Sputnik-1 well deemed non-commercial by Perenco

Perenco today issued the following operational update for the Arouwe block offshore Gabon. The company announced that the Sputnik-1 well, targeting a pre-salt structure in Gabon’s offshore Arouwe block, has encountered non-commercial hydrocarbon pay in up to 300 metres of net sandstone reservoir. The Vantage’ Tungsten Explorer’ drillship, drilled Sputnik-1 to a final depth of 4,868 metres in water depths of 1,023 metres. The rig will now leave the Arouwe block and the results of this well will be incorporated into wider understanding of the region.”

21 Oct 2014

Ophir completes drill stem test on Fortuna-2

Ophir Energy plc (“Ophir”) has announced the successful Drill Stem Test (DST) on the Fortuna-2 well in Block R, Equatorial Guinea. Ophir holds 80% of Block R and GEPetrol 20%. After successfully drilling and coring the Fortuna-2 well, a DST was conducted to prove the deliverability of the Fortuna gas field. The DST achieved a sustained flowrate of 60MMscfd with a drawdown of less than 20 psi at the reservoir. This rate was surface equipment constrained. Based on the expected operating conditions of the FLNG facility, the well is estimated to have been able to deliver a production rate of c.180MMscfd via the 5” drill pipe that was used for the DST. The excellent flow rate, at minimal drawdown, is a strong indication that the number of development wells required for the Fortuna reservoir will be reduced from the seven initially assumed in scoping work, thereby improving development economics. During pre-FEED, this result will be evaluated, in conjunction with the core, to create reservoir models that will then help determine the final number of development wells. The Fortuna field complex has estimated mean recoverable resources of 1.3TCF and will form the first phase of the FLNG development. This result further de-risks the Miocene turbidite play that forms all of the Block R accumulations. The total estimated mean recoverable resources of Block R, including the discoveries and adjacent de-risked volumes, are now 3.4TCF. The incremental volumes (1.2TCF from the Silenus Complex, 0.5TCF from Tonel and 0.4TCF from other smaller discoveries) will be produced in the later phases of the development as the Fortuna field comes off plateaux. The next milestones for the Block R FLNG development will be (i) the agreement of gas fiscal terms and (ii) the selection of the consortium to build, own and operate the mid-stream project. Both of these are anticipated by end 2014. The award of the upstream and midstream FEED contracts is planned in early 2015. FID is expected in 2016 and first gas in 2019.

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.

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.

2 Sep 2015

Petrobras cancels 'Titanium Explorer' drillship contract

Vantage Drilling Company (2Vantage") received a notice dated August 31st, 2015 (the "Notice") from Petrobras America, Inc. ("PAI") and Petrobras Venezuela Investments & Services B.V. ("PVIS") stating that PAI and PVIS were terminating the Agreement for the Provision of Services Contract for the Titanium Explorer dated February 4th, 2009 (the "Drilling Contract"), between PVIS and Vantage Deepwater Drilling Company, a wholly-owned indirect subsidiary of Vantage, and which had been novated to PAI. The Notice alleges that Vantage has breached its obligations under the Drilling Contract. The Notice does not provide any explanation as to the facts and conduct that constitute a breach by Vantage of its obligations under the Drilling Contract. Vantage strongly disagrees with the allegations of contractual breaches made by PAI and PVIS in the Notice. Vantage has filed for arbitration to challenge the assertions made in the Notice and to assert that the Notice is a wrongful attempt to terminate the Drilling Contract. Vantage believes that it is in compliance with all of its obligations under the Drilling Contract.

19 Feb 2016

Vantage Drilling International Announces Agreement for Tungsten Explorer

Vantage Drilling International ("Vantage" or the "Company") announced today that it had signed an agreement for a two-year extension of the Tungsten Explorer contract. The contract is now anticipated to keep the Tungsten Explorer working until October 2018. Paul Bragg, President and Chief Executive Officer, commented, "We are pleased to announce this agreement with our customer. This agreement will provide visibility to cash flow for an extended period of time."

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.

17 May 2017

Topaz on Location at Bualuang

The Topaz driller is now on location at the Bualuang field, offshore Thailand. The rig will be used to drill two infill development wells and one well targeting a near-field prospect. According to an Ophir update, the three wells will be completed at a cost of US$12m. Current production (year to date) from Bualuang is averaging 8,100 barrels per day.

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