Cairn Energy is due to start its 1 billion bbl-seeking drilling program on its prospective offshore Senegal blocks in coming weeks.
The Ocean Rig Athena is expected to start mobilization to Senegal from its current location in Angola in the next few days, said partner FAR Limited.
Ocean Rig Athena is under long term contract with ConocoPhillips, whose drilling organization will help manage the Senegal drilling program, as a partner in the Senegal joint venture.
The firm drilling program includes three firm wells, two of which are due to be appraisal wells on the major 2014 SNE-1, or Shelf Edge, oil discovery, including a coring and testing program, plus one shelf exploration well to further evaluate the shelf area prospectivity.
The third well will be the first exploration well to be drilled in the blocks following the discoveries in the FAN-1 and SNE-1 wells, targeting the Bellatrix prospect and aimed at building the resource base within tie-back range of a possible future hub development over the SNE field.
Cairn said in March it could be looking to drill up to six wells in the campaign.
Ocean Rig Athena is a new 7th generation, dual derrick, dynamically positioned drill ship (Enhanced SAIPEM 10000 design) that was first delivered on 24 March 2014. After successfully completing acceptance testing it commenced drilling operations in Angola in June 2014 under a three-year drilling contract with ConocoPhillips.
Ocean Rig Athena is under contract with ConocoPhillips until May 2017, plus ConocoPhillips has an option to extend the duration of the contract for two years.
The day rate for drilling for the Senegal joint venture has been adjusted downwards to reflect prevailing market conditions, where day rates have dropped by up to 50% for deep water drilling units offshore Africa. These reduced rates are expected to allow the drilling and testing program to be completed for a heavily reduced cost in comparison to what was envisaged 12 months ago under a higher oil price environment.
Cairn holds 40% interest in the Senegal joint venture with ConocoPhillips holding 35%, FAR Limited 15% and Petrosen 10%.
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