Australia’s Beach Energy has terminated a drilling contract with Diamond Offshore for the Ocean Onyx drilling rig.

Ocean Onyx rig; Source: Diamond Offshore

The rig was supposed for use for the event of its undeveloped Otway Basin fuel reserves, in addition to exploration for added fuel reserves, concentrating on elevated fuel provides for the Victorian fuel market.

In an replace on Monday, Beach mentioned it had issued a discover of termination for the Ocean Onyx rig contract because the operator of the Victorian Otway Basin Joint Venture the place OGOG (Otway) Pty Ltd is a associate.

The semi-submersible Ocean Onyx rig arrived in Victorian state waters in mid-April for the start of the Victorian Otway Basin offshore drilling marketing campaign.

The rig’s supply window was purported to be between December 2019 to February 2020. The first properly anticipated to be drilled within the offshore program was purported to be the Artisan fuel exploration properly, which is positioned within the VIC/P43 allow.

Beach gained regulatory approval to drill the Artisan properly again in March 2020.

As the arrival date was later than had been agreed and specified within the rig contract, Beach exercised its proper to terminate the settlement, the corporate defined.

The rig had not but been accepted by Beach and subsequently while some preliminary start-up prices have been incurred, the corporate’s spend so far just isn’t materials.

Beach acknowledged that every one events are partaking in discussions with regard to the longer term operations of the Ocean Onyx rig and the Victorian Otway Basin offshore drilling marketing campaign, with a view to agreeing a brand new contract in the end.

However, this course of will think about executing the drilling marketing campaign through the COVID-19 epidemic and related restrictions.

Beach’s preliminary evaluation is that offshore drilling is unlikely to begin till FY21, with the precise timing to be agreed as a part of any new contracting course of.

Onshore to offshore

Beach additionally mentioned within the Monday replace that the onshore to offshore Black Watch-1 properly was just lately accomplished with drilling outcomes in-line with pre-drill expectations. This properly will enhance Otway Gas Plant output when it’s tied in later this quarter.

Beach is planning to spud the Enterprise onshore to offshore exploration properly within the second half of calendar 2020.

The submit Beach Energy ends Diamond rig contract appeared first on Offshore Energy.

Read more at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here