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.

Posted: 4 days ago

Borr Drilling sells cold-stacked jack-up rig


  • Business & Finance
Posted: four days in the past

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.

The publish BW Energy revealed as purchaser of two Borr rigs as Gabon growth plan will get revamped appeared first on Offshore Energy.

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