Page 15 - LatAmOil Week 24 2021

LatAmOil NEWS IN BRIEF LatAmOil

In connection with this extension, the Com- rigs due to improved market conditions. leading portfolio of technologies and services,
pany and our Mexican partner have entered Borr Drilling, June 15 2021 and a ‘one team’ approach to project delivery.”
into a Memorandum of Understanding (MoU) The Bacalhau Field is located 185 km from
to make certain changes in the structures of the Equinor awards Subsea the coast of the municipality of Ilhabela, in the
joint ventures, where our Mexican partner will state of São Paulo, at a water depth of 2,050
buy Borr Drilling’s 49% stake of the integrated Integration Alliance EPCI metres. Bacalhau is Brazil’s first integrated SPS
services JVs Opex and Akal (the IWS JVs). The and SURF project. The award is a significant
transaction is expected to free up a gross amount contract for Bacalhau endorsement of Subsea Integration Alliance’s
of $28mn for Borr Drilling, representing historic strong position within the integrated market
profits in the IWS JVs and some settlements of Schlumberger announced today an award to and our long-established local presence in Brazil.
other payables, which is incremental to the day- Subsea Integration Alliance of a large contract by Schlumberger, June 15 2021
rate earnings resulting from the provision of Equinor on its Bacalhau project offshore Brazil.
drilling services. The contract scope covers the engineering, pro- Archer receives extension
Simultaneously, Borr Drilling will acquire curement, construction and installation (EPCI)
an incremental 2% stake of the joint ventures of the subsea production systems (SPS) and sub- from PAE for drilling services
performing drilling services (the ‘Drilling JVs’) sea pipelines (SURF).
from the Mexican partner, and by that hold a The development will include 19 trees as well contract in Argentina
51% majority ownership position. The Drill- as associated subsea equipment including subsea
ing JVs will continue to earn day rates from its wellheads, subsea controls and connection sys- Archer has announced that Pan American
main customers Opex and Akal through regular tems, and a full completion workover riser. The Energy has provided a two year extension noti-
drilling contracts. This will streamline the Com- SURF scope comprises rigid risers, flowlines, fication for Archer’s drilling, workover and pull-
pany’s Mexican operation, reduce our risk, and and umbilicals. ing services contract for Pan American’s Cerro
over time lead to a more stable cash-flow. The The Subsea Integration Alliance team estab- Dragon field in the Golfo San Jorge basin in
Company expects to close the transaction within lished during the initial front-end engineering southern Argentina. Pan American has the flex-
the third quarter of 2021. design phase, awarded in January 2020, will now ibility to adjust the level of activity up or down
As of the end of Q1-2021, Borr Drilling transition into the full EPCI phase. Project man- over the contract term. The total estimated value
reported a receivable balance of $30.3mn from agement and detailed engineering will take place of the contract extension, based on current activ-
its related parties, mainly representing bareboat in Rio de Janeiro. Offshore activities will com- ity level, is expected to be $200mn, subject to
revenue and other earnings due from the Drill- mence in 2022 using Subsea 7’s reel-lay, flex-lay actual activity level, services provided, and final
ing JVs. In addition, the Drilling JVs has a posi- and light construction vessels. contract terms which are to be negotiated.
tive working capital balance and retained profits “This award reflects our commitment to Dag Skindlo, CEO of Archer, commented:
attributable to Borr Drilling. The $28mn gross enhance the performance of Equinor’s Bacalhau “Pan American is a leading player in the oil
settlement for the transaction is in addition to field through an open collaboration approach, and gas industry in Argentina and this contract
this amount. with the integration and application of inno- extension reflects their confidence in Archer’s
The cash generated by the Company’s 13 vative subsea technology solutions building on ability to deliver safe and cost-effective opera-
operating rigs is expected to cover the finance, Schlumberger’s high pressure and deepwater tions in Argentina.”
stacking and G&A cash cost for the third quar- expertise,” said Donnie Ross, president, Produc- Archer, June 10 2021
ter 2021. Additionally, with improved regularity tion Systems, Schlumberger. “At the same time,
in payments from Pemex, continued operation this will have a positive impact on the regional PGS delivers rejuvenated
of Borr Drilling’s rigs in Mexico until 2022, the economy through in-country value creation.”
proceeds from the sale of the IWS JVs, and an “We have worked closely with Equinor since data for Santos West
overall activity for the Company in excess of 13 the FEED award back in 2020,” said Stuart
rigs should provide the Company with sufficient Fitzgerald, CEO, Subsea Integration Alliance PGS has revitalised 3D data over the Bauna field
liquidity runway until the current debt matur- LLC. “Now in the EPCI phase, we will support in southwest Santos Basin and its surrounding
ities in 2023. The Company is also optimistic Equinor in maximising the Bacalhau field’s area. This preprocessed dataset is now available
about re-activations of additional warm stacked potential through Subsea Integration Alliance’s for evaluation of blocks for Brazil’s upcoming
Permanent Offer Round.
The data rejuvenation of legacy survey BM-S-
40 started from field tapes and applied the latest
workflow for data conditioning, noise, and mul-
tiple suppression to create a new 2,500-square
km pre-processed dataset.
The results, now available, can be input into
new model building and imaging workflows,
allowing a quicker evaluation of opportunities
in the area. This is good news for companies that
would like to nominate blocks in an area that is
part of Brazil’s Permanent Offer Bid Round.
Using a subset of the preprocessed data, PGS
has also produced a high-resolution PSTM over
the Bauna field.
PGS, June 09 2021

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