BW Energy has concluded on another growth plan for the Hibiscus/Ruche satellite tv for pc area within the Dussafu license offshore Gabon, utilizing a transformed jack-up rig to scale back investments and time to first oil.
The earlier plan concerned setting up and putting in a brand new wellhead platform.
As a results of its determination to make use of another growth plan, BW Energy stated on Monday it has acquired two jack-up drilling rigs, the 2003-built sister-units Atla and Balder, from Borr Drilling.
BW Energy added it’ll pay a complete of $14.5 million for the 2 models.
As reported final Wednesday, Borr Drilling entered into an settlement to promote its cold-stacked jack-up drilling rig Atla. However, on the time, Borr has not revealed the identify of the operator.
In a contemporary replace on Monday, Borr confirmed it has entered into an settlement to promote its cold-stacked jack-up drilling rig, Balder, to BW Energy.
The completion of the sale is anticipated within the fourth quarter of 2020, and Borr will obtain $four.5 million sale proceeds. The rigs will stop to commerce within the drilling rig market.
“A jack-up conversion will allow us to scale back capital investments by about $100 million in comparison with our earlier growth plan”, stated Carl Krogh Arnet, the CEO of BW Energy.
“We are benefitting from the supply of high-quality jack-up models at very enticing costs as a result of present drilling market droop. By re-using amenities we may also obtain a considerable discount in area development-related CO2 emissions in comparison with a newbuild platform”.
The seismic reprocessing carried out by BW Energy has indicated the potential for a considerable enhance to the Greater Hibiscus oil-in-place volumes, making additional developments within the Hibiscus/Ruche space extremely doubtless.
“This growth idea gives tangible monetary, schedule and environmental advantages. We have consequently determined to safe a second jack-up at a really enticing value to organize for the long run growth of the Dussafu license”, stated Carl Krogh Arnet.
“Acquiring a sister unit will allow us to re-use the engineering and mission plans for a second growth with apparent synergies”.
Calculations present that redeployment and conversion initiatives supply 70%-80% reductions to greenhouse fuel emissions in comparison with newly constructed property as a result of lowered metal consumption and shorter yard stays.
Further tangible advantages are lowered set up value as a jack-up can “self-install” after mobilisation to the sphere and no want for piling into the seabed for stability.
The new growth plan is anticipated to decrease the estimated cash-break even oil value for the Hibiscus/Ruche (part 1 and a couple of) growth to roughly $25 per barrel Brent.
With the deliberate elevated manufacturing from Hibiscus/Ruche, the Dussafu license manufacturing value, together with the Tortue area, is anticipated to drop to roughly $11 per barrel.
A closing determination to restart the Hibiscus/Ruche growth is topic to a lifting of COVID-19 restrictions to permit for environment friendly mission execution.
The preliminary FID accepted for the Hibiscus/Ruche growth was accepted within the fourth quarter of 2019 with an estimated gross growth value of about $660 million for each phases and confirmed assets (2P) of gross 112 million barrels of recoverable oil.
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