Maersk Drilling Wins Contract Extension for Offshore Rig in Brazil

Australian oil and gas company Karoon Energy has extended the contract for the use of Maersk Drilling's Maersk Developer semi-submersible drilling rig offshore Brazil.

Karoon Energy has exercised its option to add the drilling of up to two wells at the Neon field to the offshore drilling rig's work scope. 

The contract extension will last for 80 days and will start in direct continuation of the rig's previous work scope. The contract extension has an estimated firm contract value of $21 million.

Thomas Lysgaard Falk, Head of International Division, Maersk Drilling said:"We’re delighted to confirm this extension which will expand Maersk Developer’s activities in Brazil to include assisting Karoon in the further evaluation of the Neon discovery. During our preparations for the initial Baúna work scope, the Developer team has established a strong and close collaboration in our partnership with Karoon, and we’re looking forward to building on that in the Neon campaign"

Dr Julian Fowles, Karoon Energy's CEO and Managing Director said: "We are looking forward to the commencement of workover activities on the Baúna field by the Mærsk Developer shortly and are very pleased to have extended our contract to include the planned drilling on Neon subject to the receipt of normal regulatory approvals, which will further consolidate our already strong relationship with the team at Maersk Drilling.”

Maersk Developer is a DSS-21 column-stabilized dynamically positioned semi-submersible rig, able to operate in water depths up to 10,000 ft. It was delivered in 2009 and is currently preparing for operations offshore in Brazil with Karoon Energy Ltd.

Karoon Energy said in April it planned to drill a control well and, subject to the results of that well, a second control well in the Neon oil discovery, offshore Brazil.  

"This decision is based on extensive pre‐development studies which have determined that a potential development of the Neon discovery presents a potentially attractive investment option for Karoon," Karoon said at the time, adding that the new wells, internally named Echidna‐2 and Echidna‐3, were planned to be drilled at the conclusion of the Patola Development campaign. 

The Neon light oil discovery was drilled by the Echidna‐1 well in 2015 in licence BM‐S‐10371.

The discovery is located 50‐60km north‐east of the Karoon Energy's producing Baúna oil field at a water depth of approximately 300 meters, with light (39o API) oil tested at a facility constrained stabilized flow rate of 4,650bbls/day.