Premier Oil is to drop its plans to drill its final Falklands drilling campaign well after serving a termination notice to rig operator Ocean Rig.
The firm had been due to drill the Chatham prospect. But, following "a number of material operational issues with the Eirik Raude rig (pictured) during the term of the contract to date," Premier Oil and Noble Energy took the step to cancel its contract on the rig with immediate effect.
Premier and Noble had jointly hired the unit on a rig share basis for their respective Falklands drilling campaigns through 2015, into 2016. In October last year, Ocean Rig said it was considering scrapping both the Eirik Raude and the Leiv Eiriksson - both deepwater semisubmersible drilling rigs - if no future work was found for them. Both units currently have no future contracts booked post Q1 this year.
Premier's parter on Chatham, Rockhopper, said the Chatwell would now be deferred until the Sea Lion development pre-development drilling campaign.
Premier Oil said it was in discussions with the Falklands Islands Government regards the possibility of "drilling this prospect in the future."
Rockhopper said the postponement of the Chatham well has no impact on the planning or timetable for the field development plan for the Sea Lion initial phase development.
Rockhopper CEO Samuel Moody said: “Whilst it is a shame not to be able to drill Chatham as part of this campaign the resources added at the Zebedee location, along with the potentially very significant discoveries in the Isobel/Elaine area, mean that from a sub surface perspective this has been a hugely successful campaign.”
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