Karoon adds to Maersk rig’s backlog in Brazil

Australia’s oil and gas company Karoon Energy has decided to exercise its option for two additional wells in Brazil to be drilled by one of the Maersk Drilling-owned semi-submersible rigs.

The offshore drilling contractor informed on Tuesday that Karoon Energy had exercised options to add the drilling of up to two wells at the Neon field – located offshore Brazil – to the work scope of the semi-submersible Maersk Developer rig.

Thomas Lysgaard Falk, Head of International Division, Maersk Drilling, commented: “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.”

According to Maersk, the contract extension has a duration of 80 days, in direct continuation of the rig’s previous work scope. This deal has a firm contract value of approximately $21 million.

As a reminder, this rig was originally hired in April 2021 to perform well intervention on four wells at the Baúna field and Karoon exercised an option in June 2021 to add the drilling of two development wells at the Patola field to the rig’s work scope.

“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,” added Falk.

At the beginning of last month, Karoon revealed its decision to commit to a new drilling campaign to assess the commerciality of a potential Neon field development. The firm explained that the programme would entail the drilling of one control well and – subject to the results of that well – another, second control well would be drilled in the Neon oil discovery, which is located 50‐60 km north‐east of Karoon’s producing Baúna oil field.

The discovery is situated in a water depth of approximately 300 metres, with light (39o API) oil tested at a facility-constrained and stabilised flow rate of 4,650bbls/day. The drilling of these two wells is subject to the receipt of required environmental licences.

Commenting on the extension, Dr Julian Fowles, Karoon Energy’s CEO and Managing Director, remarked: “We are looking forward to the commencement of workover activities on the Baúna field by the Maersk 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.”

A DSS-21 column-stabilised dynamically positioned semi-submersible rig, Maersk Developer is able to operate in water depths up to 10,000 ft. Delivered in 2009, the rig is currently preparing to carry out operations offshore Brazil with Karoon.