Maersk drillship to continue supporting Malaysian oil & gas developments for next two years
Offshore drilling contractor Maersk Drilling has secured a contract extension with Sarawak Shell Berhad and Sabah Shell Petroleum Co Ltd (SSB/SSPC) for the 7th generation drillship Maersk Viking in Malaysia.
SSB/SSPC have executed the remaining three one-well options of the current drillship contract and awarded an additional eight-well contract to Maersk Drilling, the rig owner said on Monday.
Under the deal, a five-well work scope will be novated to PTTEP for drilling and plugging and abandonment activities at the Kikeh field offshore Sabah, with a total estimated duration of 116 days and expected start of the first well in November 2022, in direct continuation of the drillship’s previous work scope.
Later, following completion of its work scopes with PTTEP, Maersk Viking will undergo a scheduled special periodic survey, after which the rig will begin a six-well drilling campaign with SSB/SSPC. This work scope is expected to start in 4Q 2023, with an estimated duration of 281 days.
The total firm contract value of the contract extension and additional contract is approximately $153 million, including demobilisation and mobilisation fees, as well as fees for the use of managed pressure drilling on certain wells. The additional contract with SSB/SSPC contains options to add work on a total of 11 wells.
This is the second contract extension for this ultra-deepwater drillship this year following the one announced in February.
Morten Kelstrup, COO of Maersk Drilling, said: “We are thrilled to announce that Maersk Viking will continue to support Malaysian oil and gas developments for the next two years. This agreement is a testament to our great collaboration with Shell, and by coordinating the rig’s schedule across several different deepwater operators, we are driving efficiency and leveraging synergies for everyone involved.“