Latest update January 17th, 2025 6:30 AM
Drill rig contractual period ends with Exxon
…company says no plans to replace it at this time
Kaieteur News- ExxonMobil Guyana Limited will now have five drill rigs supporting its Stabroek Block operations as one of Stena Drilling rigs has completed its work programme.
Exxon had contracted four drill rigs from Noble: Noble Tom Madden, Noble Sam Croft, Noble Don Taylor, and Noble Bob Douglas and two from Stena: Stena DrillMAX and Stena Carron.
StenaDrillMAX joined Exxon’s Guyana fleet back in 2021. Last October, Stena DrillMAX arrived back in Guyana, to resume work for ExxonMobil after exploration drilling offshore Canada. Maritime Administration Department (MARAD) has disclosed that the Stena DrillMAX will depart the Guyana’s exclusive economic zone (EEZ) on January 15, 2025.
Exxon’s Media Advisor, Kwesi Isles said on Wednesday, “The Stena DrillMAX has completed the work programme for which it was contracted.” According to Isles, “There’s no plan to replace it at this time.” Notably, the Stena Carron contract with Exxon comes to an end in June 2025.
The Stena DrillMAX
In September 2024, it was announced that ExxonMobil has extended its contract with American offshore drilling company Noble Corporation for four of its drill ships to work in the Stabroek Block.
According to Noble, ExxonMobil has awarded 4.8 additional rig years of backlog under the Commercial Enabling Agreement (CEA) which has been assigned evenly across the four drill ships: Noble Tom Madden, Noble Sam Croft, Noble Don Taylor and Noble Bob Douglas, extending each rig’s contract duration from June 2027 to August 2028.
In May 2023, Noble announced that ExxonMobil Guyana had extended their contract for the rental of the four ultra-deep-water drill ships to work in Guyana until second quarter of 2027. Notably, the drill rigs cost an average of US$420,000 (GYD$84 million) to US$500,000 (GYD$100M) per day for each ship, based on current market-rate. Market-rate changes twice per year – March and September.
To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already producing oil at a daily estimated rate over 600,000 barrels per day (bpd).
Exxon has been on an extensive drilling operation in the Stabroek Block. Yellowtail is expected to come onstream later this year and Uaru and Whiptail to follow in the coming years.
(Drill rig contractual period ends with Exxon)
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