Offshore Energy Outlook for 2020
The “new normal” is a phrase tossed around often in offshore energy circles today as those servicing and operating in the sector grapple with the harsh realities of the prolonged industry downturn. Operators, service companies and equipment suppliers have been forced to adjust to oil selling at prices well below the $100+ per barrel mark seen in years past. As of this writing, Brent oil was hovering around $62 per barrel, and analysts expect prices will remain in this range for some time into the future.On top of this, there’s another new reality for oil and gas companies to come to grips with: the so-called “energy transition”.
Seadrill Ivory Coast Contract Terminated
Seadrill Partners, the deep-water drilling contractor for the petroleum industry, has received an early termination notice from an unnamed operator for the West Vencedor rig contract offshore Ivory Coast.The contract was expected to start in 3Q 2019. In January, the rig received a six-well contract with three option wells.The West Vencedor unit had recently completed its work in Myanmar and will now stay in Southeast Asia to be marketed for additional opportunities.Seadrill Partners is expected to receive a lump sum…
Activists End Occupation of Arctic Drill Rig
Greenpeace activists climbed down from a Seadrill drilling rig in Norway on Tuesday and are no longer occupying it, the environmental group told Reuters.The rig, which was boarded by four activists on Monday, will be used next month by Equinor to explore for oil and gas in the Arctic.(Reporting by Gwladys Fouche, Writing by Terje Solsvik, Editing by Paul Tait)
Seadrill Eyes Brighter Rig Market
Seadrill's core earnings for the fourth quarter exceeded the company's own guidance, boosted by lower costs and one-off items, while the market outlook for drilling rigs was improving, the Oslo and New York-listed firm said on Tuesday.The company, controlled by Norwegian-born billionaire John Fredriksen, reported $73 million in quarterly adjusted earnings before interest, tax, depreciation and amortization (EBITDA), more than double the $35 million forecast it made in November.However, adjusted EBITDA is expected to ease to around $60 million in the first quarter…
Equinor Drills Dry Well in the Barents Sea
Norwegian energy company Equinor has come up dry in the drilling of its first wildcat well in production licence 857 in the southeastern part of the Barents Sea.Equinor, as operator of production licence area Gjøkåsen, drilled 7132/2-1 targeting the Gjøkåsen Shallow prospect about 175 kilometers north of Vardø, using the Seadrill drilling rig West Hercules. The exploration well was the first drilled in production licence 857, which was awarded in the 23rd licensing round in 2016.According to the Norwegian Petroleum Directorate (NPD)…
Equinor Stops Drilling Arctic Well After Incident
Norway's Equinor has put on hold the drilling of a key exploration well in the Barents Sea after a well incident last week, the company said on Monday.The incident occurred when Seadrill's rig West Hercules was drilling the Gjoekaasen well offshore Norway .The so-called "high-risk, high-impact" well could hold between 26 million and 1.4 billion barrels of oil equivalents, one of Equinor's partners, Aker BP, said last week.Other partners include Sweden's Lundin Petroleum and Norwegian state-owned oil company Petoro.During…
Seadrill CFO to Step Down in June
Norwegian offshore drilling rig firm Seadrill Ltd said on Thursday that Chief Financial Officer Mark Morris will step down following completion of the company's financial restructuring.The company, controlled by Norwegian-born billionaire John Fredriksen, said it has begun a formal search process and that Morris will remain in the role until the end of June to make the transition possible.Separately, Seadrill Partners said Morris would step down as chief executive officer of that firm at the end of June. Seadrill Partners is a limited liability company formed by Seadrill Ltd to own…
West Hercules to Drill More Exploration Wells
Seadrill Norway Operations Limited has been awarded a contract for drilling two exploration wells for Equinor in the Barents Sea by use of the West Hercules rig. Drilling is scheduled to start in the spring of 2019.The contract includes options for drilling nine additional wells. The rig is primarily assigned for exploration drilling. The contract is based on a master framework agreement established between Seadrill and Equinor.The rig owner is responsible for integrated drilling services, such as casing running, remote-operated vessel (ROV)…
Borr Drilling Aims to Start Paying Dividends by 2020
Drilling rig contractor Borr Drilling aims to start paying dividends by 2020, the company's founder and chairman, Tor Olav Troeim, said on Wednesday.Troeim, a former business partner of Norwegian billionaire John Fredriksen, founded Borr Drilling at the end of 2016 and the company has quickly grown into one of the largest owners of jack-up rigs which drill in the shallow waters.Schlumberger, the world's top oil service firm, is Borr Drilling's largest shareholder with a stake of 14.2 percent."We have an ambition to return a significant part of cash back to shareholders quickly ...
Real-time Monitoring System for Two Seadrill Semi-Submersibles
Seadrill has selected Kongsberg Maritime to deliver real-time monitoring systems that will enhance operability in the shallow water harsh environment operations planned for the West Hercules and West Phoenix semi-submersibles. The technology will enable more integrated and remote operations, enabling migration of expertise from offshore to onshore facilities by digitalizing assets, personnel workflows and processes, and integrating service operators across disciplines.Through the integration of the field-proven Kongsberg Riser Management System and the Kongsberg Information Management System…
Fred. Olsen Energy edges closer to financial restructuring
Norwegian drillship and rig operator Fred. Olsen Energy, owner of the yard that built the RMS Titanic, is considering a debt and equity restructuring that would almost wipe out the value of its current shares, the company said.With debt and liabilities of more than $840 million at the end of June, Fred. Olsen last month stopped paying its creditors to preserve liquidity, making it the latest victim of a slow recovery in the oil and gas exploration sector.The owner of seven drillships and rigs, as well as Belfast's Harland & Wolff yard…
Seadrill Suggests Consolidation for Drilling Market Recovery
On Tuesday, Seadrill CEO, Anton Dibowitz said consolidation of smaller offshore oil rig companies would help boost drilling market recovery in the drilling market. The statement comes a day the offshore rig firm emerged from Chapter 11 bankruptcy proceedings. Seadrill started trading new shares on the New York Stock Exchange and plans to list new shares on the Oslo Stock Exchange by end of July. Shares of Seadrill, controlled by Norwegian-born John Fredriksen, opened at $25 a share, but slid to $18 a share by 11:08am (ET).
Tullow to Pay Seadrill $254 mln Over Ghana Dispute
A London judge ordered Tullow Oil to pay rig owner Seadrill around $254 million saying Tullow was wrong to end a rig contract in Ghana on grounds of force majeure over a maritime dispute, Tullow said on Tuesday.Tullow cancelled the contract for Seadrill's West Leo rig in December 2016 after Ghana set a drilling moratorium on its TEN offshore oil and gas field which is located in waters then claimed by both Ghana and Ivory Coast.An international tribunal last year ruled in favour of Ghana, allowing Tullow, the lead operator of the project, to resume drilling.
Seadrill Exits Chapter 11
Offshore drilling rig contractor Seadrill said on Monday it had successfully completed its reorganisation, emerging from a U.S. Chapter 11 bankruptcy process launched last September. The company, once the world's largest offshore driller by the market capitalisation, was forced to seek protection from creditors when it was unable to repay its debts amassed during boom years to buy new rigs. When oil prices fell in 2014, oil companies cancelled or postponed exploration plans to save cash which reduced demand for offshore drilling rigs.
Global Maritime Appoints Frank as US Country Manager
Global Maritime appointed Eric Frank to oversee its’ United States operations based out of Houston. Frank, who will also be responsible for Global Maritime’s Dynamic Positioning (DP) services throughout the US, brings 27 years’ offshore and onshore experience to Global Maritime and has been tasked with supporting the company’s continued growth across the region. This includes a number of recent contracts relating to bridge and port infrastructure assessments, mooring designs and rig moves, new build DP testing and trials, and marine warranty services.
Top Shallow Water Driller Raises $225 Mln in Oslo IPO
Shelf Drilling, a Dubai-based contractor for shallow water rigs, raised about $225 million by issuing new shares priced at 65.35 Norwegian crowns ($8.09) per share, the company said on Friday, the latest drilling firm to list in Oslo to raise capital.Its initial public offering comes four years after the company scrapped plans to list in London just as the oil market's downturn started.Demand for shallow water or jack-up rigs has been steadily growing through 2017 after hitting a bottom at the end of 2016. Brent crude is trading at almost $74 a barrel, up from $27 a barrel in Jan.
Odfjell Drilling to Expand Fleet
Offshore rig firm Odfjell Drilling plans to expand its floating rig fleet to between six and 10 from four now, it said on Friday, the latest sign of recovery in the energy industry.After cuts in exploration spending following an oil price plunge that began in 2014, energy firms are now hiring rigs as crude prices have recovered some ground.Odfjell raised $175 million via a new share issue on Thursday to help buy semi-submersible Stena Midmax Rig from Samsung Heavy Industries for $505 million. The new issue sent the Norwegian firm's shares down 10 percent.Akastor…
Post-Bankruptcy, Seadrill Eyes Closer Oil Service Ties
Offshore oil driller Seadrill aims to expand relations with Schlumberger, the world's largest oil services firm, and other suppliers to the global oil and gas industry, its chief executive told Reuters on Wednesday. Seadrill plans to emerge from Chapter 11 bankruptcy proceedings in late June or early July, following a U.S. court's approval on Tuesday of its multi-billion dollar debt restructuring plan, CEO Anton Dibowitz said. "The confirmation is the most significant milestone in the process, and now we need to implement the plan over 60-90 days. Obviously, we would like to do it as fast as possible," he added.
US Court Approves Seadrill's Bankruptcy Exit Plan
A U.S. judge said on Tuesday he would approve Seadrill Ltd's plan to exit its Chapter 11 bankruptcy, in which the global offshore oil and gas drilling company would shed billions of dollars of debt and raise $1 billion in new investment. U.S. Bankruptcy Judge David Jones in Houston overruled two minor objections to the reorganization plan during a 90-minute hearing. The plan extends maturities on more than $5 billion of bank loans and converts about $2.3 billion in bond debt into equity in a reorganized Seadrill. In addition…
Greenpeace Boards Statoil Rig
Greenpeace activists have boarded a rig that was due to sail to the Arctic to drill prospects on behalf of oil firm Statoil, the environmental group said on Thursday. "We have two people on board and 10 on the water to ensure the rig does not leave port. Our activity started at 8am (0700 GMT) this morning," Truls Gulowsen, the head of Greenpeace in Norway, told Reuters. "We are prepared to stay as long as necessary," he added. The action took place at the Skipavik yard on Norway's west coast, where the drilling unit was being prepared for the upcoming work.