Blow out preventer (BOP) related issues have hit Songa Offshore with low earnings on two of its new Cat D semisubmersible drilling rigs.
The Songa Endurance, the second of the firm's four new Cat D rigs, had just 11% operational and earnings efficiency while working for Statoil in Norway, during January, while the Songa Equinox, the first of the Cat D rigs delivered, had 45% operational and earnings efficiency. It is also working for Statoil in Norway.
Songa said the Songa Equinox (pictured) underwent weather-related repairs until 12 January, when it returned to operations. But, from 22 January, the rig experienced further unplanned BOP related downtime before going back on operating rate on 5 February 2016.
Songa Endurance experienced BOP equipment failure while performing a final test on location the first week in January. This was repaired during the month and the rig was back on operating rate on 5 February 2016, Songa says.
Meanwhile, it's third new Cat D rig, Songa Encourage, was delivered 16 December and is now en-route from Korea to Norway. It is currently outside Angola heading towards Las Palmas. Songa Enabler, the fourth new rig, is scheduled to be delivered late March 2016.
The drilling packages were supplied by Akastor company MHWirth, when it was part of Aker Solutions.
Statoil ordered the Cat D rigs at a time when rig capacity was tight and rig rates high on the Norwegian Continental Shelf and across the North Sea. Now rigs are leaving to seek work elsewhere.
The award for the first two was made in 2011, with delivery originally scheduled for 2014, with firm terms of eight years each and with options that could extend this period to 20 years. The second order for two more was signed in 2012, with delivery originally scheduled for early 2015. However, the yard, Daewoo Shipbuilding & Marine Engineering, has suffered “significant delays” and overruns, says Songa. The firm’s COO Mark Bessell was moved to Korea to head the project team to keep the remaining construction progress on track.
The purpose-built category D rigs are able to operate in water depths between 100-500m, and drill wells to a depth of 8500m. These so-called “workhorses” for mature fields will primarily be used for drilling of production wells and well completion.
Songa Offshore's older fleet has seen better performance, with Songa Dee achievinh an operational efficiency of 100% and an earnings efficiency of 98%, working for Statoil in Norway.
Songa Delta achieved an operational efficiency of 100% and an earnings efficiency of 98% for the month, also working for Statoil in Norway.
However, the Songa Trym is currently being stacked, while being marketed for new employment, following early cancellation of its drilling contract.
Last month, Songa said it was laying off 200 onshore staff, about two thirds of which are contractors. Meanwhile, Songa and rig builder Daewoo Shipbuilding and Marine Engineering (DSME) have been in dispute over cost overruns on the Cat D project.
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