Sirius still waiting for COSL rig set for Ororo drilling

Sirius Petroleum, a Nigeria-focused oil and gas development and production company, is awaiting clarification from COSL on timing for completion of mobilization of the offshore drilling rig set to drill the Ororo-2 well.

Sirius said on Tuesday that it would be able to provide an update on timing for the spudding of the Ororo-2 well in the near term.

Sirius, which recently transitioned into an operating company, gained a 40% economic interest in the Ororo field through a joint operating agreement from August 2017. Its partners are Owena Oil & Gas (100% state-owned entity) and Guarantee Petroleum, who own 27% and 33%, respectively.

The Ororo field, discovered in 1986, is located within OML 95 in shallow waters offshore Ondo State, Nigeria.

Sirius in November 2016 signed an innovative rig deal with China’s COSL Drilling for the provision of a jack-up drilling rig to be used for the Ororo field well campaign. It was agreed for COSL to take payment for the charter at a later date. In May 2017, COSL confirmed and identified the COSL Power as the jack-up rig which will be utilized for Ororo drilling campaign.

In March 2018, COSL decided to deploy the COSL Force jack-up rig instead of the COSL Power jack-up. At the time, the rig was located offshore UAE and was “ready to be mobilized to Nigeria shortly.”

Offshore Energy Today has reached out to Sirius Petroleum, seeking more info on the current location of the rig, and the expected spud date. The company has yet to respond.

According to previous statements, the drilling of the Ororo-2 well was supposed to begin in April 2018. The well will be drilled in a location close to the Ororo-1 well, drilled by Chevron in 1986.

Also, Sirius amended terms for the COSL Force, extending the initial program to cover both the Ororo 2 and Ororo 3 drill programs for a lump sum of $9 million on the assumption that the duration of the work will not exceed 90 days from the spud of the first well in the program and assumes a 45-day work duration per well. If the duration of the work exceeds that period, daily rates will apply.

In accordance with the amended agreement, Sirius has made an initial deposit payment of $1.5 million to COSL.

Offshore Energy Today Staff