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Repsol secures rig for new oil well in Kanuku Block
– as ExxonMobil extends contract term for future projects including Yellowtail
Kaieteur News – The Noble Corporation, which has seen much success in Guyana with its work for Esso Exploration and Production Guyana Limited (EEPGL), will be aiming for a repeat with a new offshore venture in the country’s Exclusive Economic Zone, spudding a well for Repsol in the Kanuku Block.
The Noble Regina Allen has been contracted to spud an oil well for Repsol in the Kanuku Block in May
Noble Corporation made the disclosure on Friday last when it provided a fleet status report, and announced that it had raked in a significant number of drilling deals.
These include one for Repsol for the Noble Regina Allen for a one-well deal in the fourth quarter of 2021 with that rig starting work offshore Guyana in May 2022.
Additionally, Noble Corp. said in its report that three of its jack-up rigs and three drill ships won either new deals or extensions. The offshore driller also won a conditional award under the Commercial Enabling Agreement (CEA) with ExxonMobil for four rigs in Guyana.
The three jack-ups in question are the Noble Regina Allen, Noble Tom Prosser, and the Noble Lloyd Noble.
As it relates to the Exxon projects, Noble Corp said the CEA includes approximately 7.4 years of additional contract term and reallocates all existing terms evenly across the four rigs in Guyana.
The rigs in question are Noble Tom Madden, Noble Sam Croft, Noble Bob Douglas, Noble Don Taylor.
“It must be said that the additional contract term is subject to government approval and final project sanction for the Yellowtail development project. Once finalised, the conditional award will extend the contracted term into the fourth quarter of 2025.”
Importantly, it was noted that at the end of December 2021, the company’s estimated revenue backlog totalled approximately $1.2 billion, excluding the CEA conditional award.
The Company noted too that there is already a trend developing with increases in rig day rates. In its fleet status report, Borr Drilling CEO, Patrick Schorn, said that it was becoming increasingly evident that the supply of rigs ready to go to work within six months was far less than the market previously anticipated.
“Therefore, [Borr maintains] the view that day rates will increase based on the current tender activity and available jack-up rig supply,” Schorn added.
As it relates to Repsol, its activity in Guyana is focused on the Kanuku Block some 150 kilometres offshore Guyana.
Repsol operates the Block with a 37.5 percent working interest, which is located in an area near existing oil and gas discoveries.
Repsol initially signed a contract with the government of Guyana for the Kanuku Block in 2013.
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