Offshore oil & gas drilling gigs bring billions of dollars to rig owners' backlogs
Offshore Energy Today
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As offshore oil and gas exploration and well intervention plays alongside other assignments, such as those related to carbon capture and storage (CCS) wells, continue to pop up on rig owners' drilling agendas, five companies have managed to get a hold of multibillion-dollar contract backlogs.
The quarterly results season remains in full swing, as Transocean , Noble Corporation , Valaris Limited , Borr Drilling , and Odfjell Drilling confirm a combined total backlog of $23.22 billion for the third quarter of 2024. Even though a slight slowdown in contracting activity has been in effect, the backlog still represents an uptick from $23.03 billion in the second quarter of 2024 and $22.7 in the third quarter of 2023. Based on rig market predictions, an increase in rig demand is on the cards in the future.
🌊 𝐑𝐢𝐠 𝐥𝐨𝐠𝐬 𝐢𝐧 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐝𝐫𝐢𝐥𝐥𝐢𝐧𝐠 𝐝𝐢𝐚𝐫𝐲🚢
◈ Enersol Energy Solutions , a joint venture between ADNOC Drilling and Alpha Dhabi Holding , has taken steps to bring into its fold EV Holdings for $45 million.
◈ Dolphin Drilling 's semi-submersible rig has started its drilling job offshore India.
◈ Crystal Offshore Middle East has wrapped up its scope of work related to making Borr Drilling 's newbuild jack-up rig ready for its first drilling assignment offshore Africa.
🛳️Latest rig moves ⚓
◈ Stena Drilling 's Stena Don semi-submersible rig recently left Shell 's Penguins redevelopment project in the UK sector of the North Sea, where it worked since April 2024 after spudding a well on the oil major's Arran field. The mobile offshore drilling unit is now on the move, going to Norwegian waters to reach Bergen. After a one-year contract in July 2022, Shell handed out a six-month option for the rig at the end of last year. The firm has six more months at its disposal, which if exercised, would extend the rig's assignment into Q2 2025.
◈ Noble Corporation's Ocean BlackHornet drillship is now at the U.S. Gulf of Mexico's Green Canyon Block 584, where it is expected to spud the Far South GC-584 well, carrying out drilling operations with bp in a water depth of 1,255 meters, months after securing a two-year contract extension, which is slated to begin in February 2025 in direct continuation of the current contract.
◈ Island Drilling Company AS 's Island Innovator semi-submersible rig has come to Spain to embark on a plug and abandonment gig for Repsol in the Casablanca field and surrounding satellite fields. This comes more than three years after operations at the oil platform in the waters around the coast of Tarragona stopped in 2021 and a year after the Spanish government gave its blessing for three-phase P&A activities on eight oil wells (Casablanca-11, Casablanca-12, Rodaballo-1, Montanazo D-5, Lubina-1, Chipirón-1, Chipirón NE and Chipirónm S) connected to the Casablanca platform.
🛢️𝐎𝐢𝐥 & 𝐠𝐚𝐬 𝐬𝐭𝐨𝐫𝐢𝐞𝐬 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐨𝐟𝐟𝐬𝐡𝐨𝐫𝐞 𝐞𝐧𝐞𝐫𝐠𝐲 𝐛𝐨𝐨𝐤𝐬 ⛽
◈ Shell recently hit a pause button on certain drilling activities in the Gulf of Mexico and started transferring non-essential personnel to shore from assets in the area due to a potential hurricane threat.
◈ BW Energy , Vaalco Energy , and Panoro Energy have secured production sharing contracts for two exploration blocks in shallow waters off the coast of Gabon.
◈ After Dana Petroleum Limited and Nordsøfonden gave up on two existing licenses for oil and gas exploration and production in the Danish North Sea, Petrogas E&P UK, Petrogas Denmark, and Danoil Exploration have become the assets' owners.
◈ Challenger Energy Group Plc 's data reprocessing program at a shallow water exploration block offshore Uruguay is anticipated to support a formal farm-out process slated to kick off in mid-2025.
◈ Altera Infrastructure is divesting its stake in Altera Shuttle Tankers, enabling Maistros Shiptrade, an affiliate of the Greek shipping major Angelicoussis Group, to get hold of it.
◈ Valeura Energy Inc. wraps up restructuring quest to bolster its Thailand-based hydrocarbon assets.
◈ Sval Energi is disposing of its stake in a Norwegian Sea asset, which Equinor is buying to boost its ownership to 69.5%.
◈ A naming ceremony has been held at Seatrium 's yard for MODEC 's new FPSO, which will be deployed at Equinor 's project in Brazilian waters.
◈ ExxonMobil has acquired another FPSO, employed at its third oil project in Guyana, from SBM Offshore , a year after paying around $1.26 billion to the Dutch FPSO operator for the second FPSO working on Phase 2 of the first oil development project at the Stabroek block.
◈ QatarEnergy has set the wheels in motion to become Chevron 's new partner at a block in the Mediterranean Sea offshore Egypt, where Stena Drilling 's rig will start drilling operations soon.
◈ TotalEnergies has achieved full technical capacity at its natural gas redevelopment project in the North Sea offshore Denmark. The company intends to gradually ramp up output to reach maximum production before the year-end.
⚙️ 𝐋𝐍𝐆 𝐜𝐡𝐚𝐩𝐭𝐞𝐫𝐬 𝐢𝐧 𝐠𝐥𝐨𝐛𝐚𝐥 𝐞𝐧𝐞𝐫𝐠𝐲 𝐭𝐨𝐦𝐞 📊
◈ ExxonMobil has postponed the final investment decision for its liquefied natural gas project off the coast of Mozambique, which is now anticipated in early 2026.
◈ Kiewit secured an engineering, procurement, and construction assignment with Glenfarne Energy Transition, LLC for the Texas LNG terminal in Port of Brownsville.
◈ FLEX LNG 's vessel duo will remain with BP until 2039 thanks to the latest extension arrangements.
◈ QatarEnergy 's four new LNG vessels, constructed at Samsung Heavy Industries and Hanwha Ocean , got christened shortly after two other newbuilds were named in September 2024.
◈ Energy Market Authority (EMA) is pooling resources with PetroChina International to fortify Singapore’s LNG supply and management skills.
◈ ADNOC Group 's giant LNG project in the UAE has secured its first definitive supply deal with SEFE Securing Energy for Europe GmbH .
◈ Woodside Energy has picked Winyama Contracting Group for work on its LNG Train 1 modifications project near Karratha in Western Australia, which is connected to its giant offshore gas development, currently under construction.
◈ ADNOC Group 's ADNOC Gas will pay $5 billion to take over the interest in a low-carbon liquefied natural gas development project in the United Arab Emirates.
◈ New Fortress Energy is facing a federal securities class action due to damages caused by a drop in stock prices.
🍃𝐄𝐧𝐞𝐫𝐠𝐲 𝐭𝐫𝐚𝐧𝐬𝐢𝐭𝐢𝐨𝐧 𝐩𝐚𝐠𝐞𝐬 𝐢𝐧 𝐧𝐞𝐭 𝐳𝐞𝐫𝐨 𝐭𝐚𝐥𝐞𝐬 ☀️
◈ The sustainable offering has been enriched over time with many options, including rig-to-reef projects, which oil and gas players can employ to bolster their environmental, social, and governance (ESG) goals. Hibiscus Petroleum Berhad recently unveiled the launch of one such project off the coast of Malaysia in a bid to promote more cost-effective future decommissioning activities and simultaneously enhance marine biodiversity.
◈ On a quest to diversify its operations and boost sustainability, KISTOS PLC has acquired an interest in Spiralis Energy , which is engaged in tidal power activities.
◈ AGR , part of ABL Group , has finished a technical peer review of two North Sea carbon storage licenses offshore Norway for Aker BP ASA .
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Kind Regards,
𝑴𝒆𝒍𝒊𝒔𝒂 Č𝒂𝒗č𝒊ć
Senior Editor at Offshore Energy Today
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