Maersk Drilling has announced that its outfit has received a conditional letter of award from Tullow Ghana for the Maersk Venturer drill ship and its local partner, Rigworld will provide support for the contract.
The company will supply the ultra-deepwater drillship, Maersk Venturer and additional services expected to start early this year. The ultra-deepwater drillship to be provided by Maersk Drilling will be used for work on the TEN and Jubilee fields, offshore Ghana.
Should the contract be finalized, the Maersk Venturer would return to Ghana, where it finished working for Tullow in 2020.
The duration of the contract is for four years, starting in the second quarter of 2021. Maersk Drilling has estimated the total value is $370 million, excluding additional services provided as well as performance bonuses.
Rigworld, Maersk Drilling’s local partner will support the contract, which has a progressive day rate structure for the full duration. But after the initial 18-month period, there is a provision to switch to a market-linked day rate structure. In their last contract with Tullow Ghana, Maersk Drilling partnered Rigworld to effect the contract.
Concerning this new engagement, finality of the contract to be made are conditional upon certain regulatory conditions being met. Maersk Drilling will publish an announcement upon conclusion of a final contract.
The CEO of Maersk Drilling, Jørn Madsen expressed delight in Tullow Ghana Ltd. for showing confidence in them once again for this long-term contract.
“We’re delighted to get this opportunity to secure a long-term contract for Maersk Venturer, as Tullow once again shows confidence in Maersk Drilling’s ability to deliver stable and highly efficient operations to their major development projects in Ghana.
CEO Jørn Madsen, Maersk Drilling
“This also means that we will be able to continue our work with the Ghanaian community and local suppliers who have previously contributed to our West African operations.”
Tullow warned in January that production in Ghana would fall, from 52,400 barrels per day in 2020 to 40,500 bpd in 2021. The pace of decline is particularly steep at the TEN project, with output falling from 23,000 bpd to 16,200 bpd.
The first focus for drilling is likely to be the Jubilee oil field. Tullow said it is expected to start another production well on this field in the third quarter of this year.
Maersk Drilling signed a deal with Tullow in January 2018 for a four-year contract in Ghana. Tullow terminated the contract about a year and a half early, in June 2020.
Tullow is a leading independent oil & gas, exploration and production group. The Group has interests in over 100 exploration and production licenses across 18 countries which are managed as three Business Delivery Teams: West Africa, East Africa and New Ventures.
Maersk Drilling has a fleet of 24 drilling rigs including drillships, deepwater semi-submersibles and high-end jack-up rigs. Maersk Drilling employs an international staff of 3,000 people and generated an underlying profit of USD 743m in 2016.
