Page 13 - Euroil Week 50 2019

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NEWS IN BRIEF
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option in its contract for Odfjel Drilling’s Deepsea Nordkapp semi-submersible drilling rig. The pair originally entered the contract in April 2018.
RockRose is the operator of West Brae
with aThe first one-year option will begin
after the expiry of the two-year firm period
in May 2021. The approximate contract value for the firm scope is $128mn, excluding any integrated services. In addition, a performance bonus will be applicable, Odfjell Drilling said.
CEO Odfjell Drilling Simen Lieungh said: “We are very pleased to see Aker BP’s continued commitment to the Alliance Agreement between the parties and
Odfjell Drilling is equally committed to delivering our very best performance on Deepsea Nordkapp.”
The Norwegian Petroleum Directorate notably gave Aker BP a permit on December 18 to drill a wildcat in the Norwegian Sea using the Deepsea Nordkapp rig.
The well 6506/5-1 S is targeting the Nidhogg prospect in production licence 1008, where Aker BP has a 60% stake. Its partner Wellesley Petroleum holds the remaining 40% interest.
December 18 2019
Orsted enters deal to divest its LNG business
Today, Orsted has signed an agreement to divest its LNG business to the leading global natural resources company Glencore.
In December 2007, Orsted entered into a long-term agreement with the Dutch LNG regasification terminal Gate in Rotterdam
regarding the right to use 3 billion cubic metres of annual regasification capacity from 2011 to 2031. Today, Orsted’s LNG business consists of the long-term regasification capacity agreement with the Gate terminal in Rotterdam and five LNG purchase agreements.
Even though Orsted’s LNG team has performed well during the last few years,
the business has been loss-making and is projected to remain so for years to come. Further financial improvements would require further contractual commitments. With Orsted’s global expansion in renewable energy, it is clear that LNG trading will not be a part of Orsted’s future core business, and it is therefore being divested.
The transaction entails a payment from Orsted to Glencore and will result in a loss that exceeds our current provision related to the LNG activities. We will therefore increase the provision in 2019. The transaction will have a positive impact on EBITDA from 2020 onwards. EBITDA guidance for 2019 remains unchanged.
Completion of the transaction is dependent on the fulfilment of a number of conditions and is expected to take place in the summer of 2020.
Orsted, December 18 2019
Perenco scraps jack-up
contract with Maersk
Drilling
Maersk Drilling said on December 18 it had received notification that Perenco was
cancelling a three-well contract it secured for the Maersk Resolute jack-up rig in the UK North Sea.
According to Perenco, the contract was cancelled because its scope was extended beyond the original schedule, causing delayed arrival. Pereno had planned to start drilling with the rig in October.
“The duration of the three-well contract with Perenco was estimated at 150 days. The contract cancellation does not impact the guidance for 2019,” Maersk Drilling said.
December 18 2019
Var Energi files Balder development plan
Var Energi has filed a development plan
for the Balder Future project, expected to extend the production life of the Balder and Ringhorne fields until 2045.
The revised plan was submitted to the Norwegian Ministry of Petroleum and Energy on December 17. Balder Future is a NOK19.6bn ($2.16bn) investment, the operator said.
Under the project, 13 new production wells and one water injection well will be drilled
at Balder, in order to recover an extra 136mn barrels of oil equivalent.
The service life of the Jotun A floating production storage and offloading vessel will also be extended.
December 18 2019
Week 50 19•December•2019
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