Statoil (NYSE: STO) and its partners have contracted the West Phoenix rig for exploration drilling on the U.K. and Norwegian continental shelves from the summer of 2018, the company said on March 1.
The contract is awarded to the two Seadrill (NYSE: FRO) companies North Atlantic Drilling UK Ltd. and North Atlantic Norway Ltd.
The semisubmersible rig West Phoenix will first drill an exploration well for the Ragnfrid North license on the Norwegian Continental Shelf (NCS), followed by three wells on the U.K. Continental Shelf (UKCS). The rig has been approved by authorities for use both on the NCS and UKCS.
“We needed a high capacity rig, because we will be drilling wells in high-pressure, high-temperature formations. We chose the Phoenix, which is a modern sixth generation dual-derrick rig. Seadrill has rigs suited for our needs,” Geir Tungesvik, Statoil’s senior vice president for drilling and well, said.
The Ragnfrid North well has an estimated value of $19.5 million, while the value of the three wells on the UKCS is estimated at $18.5 million. The figures include integrated drilling services such as fuel, casing running, ROV, slop treatment and cuttings handling as well as mobilization and demobilization.
Ragnfrid North is located in PL199, around 12 miles (20 km) south of the Kristin Field in the Norwegian Sea.
After completing the Ragnfrid North well, the West Phoenix will move to the UKCS where Statoil will drill three wells.
Drilling rig contractor Maersk Drilling, which will soon list on the Copenhagen stock exchange, said Feb. 25 the offshore drilling market is improving as oil firms generate more cash and look to boost reserves.
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