Kosmos extends Atwood contract for a little longer

15 August 2017, Week 32, Issue 702

Atwood Oceanics has agreed to provide its Atwood Achiever rig to Kosmos Energy for one well, at an undisclosed day rate, the drilling company said on August 9. The rig is currently under contract to Kosmos. 

afroil1508.jpg

The statement said it would carry out work offshore Northwest Africa. While it only has one firm well, there is an option for six single-well options. Assuming the single well option is used, the Atwood Achiever would be available as of March 2018. Should the six options be exercised, drilling work would be extended until December 2018. 

The Atwood Achiever’s current contract is due to end in November of this year. The estimated day rate is US$595,000, according to Atwood, although it noted that the actual price was lower. In 2015, the rig was contracted to Kosmos at a price of US$667,000 per day. 

Atwood’s CEO and president, Rob Saltiel, welcomed the deal, saying Kosmos was a “valued client, and we appreciate their confidence in the Atwood Achiever”. 

The Atwood Achiever drilled the Yakaar-1 well, offshore Senegal, which was declared to have found gas in May of this year. The rig then went on to the Tortue-1 discovery, to carry out a drill stem test. This is intended to allow the company – and its partner, BP – to carry out a design study on the find later this year. A final investment decision (FID) is expected in 2018 and first gas in 2021. 

Kosmos’ exploration spending in the first quarter of this year included US$42 million of costs associated with the stacking of the Atwood Achiever, in addition to US$48 million as a payment for the cancellation of a fourth-year option on the rig. It was not explained why Kosmos cancelled the rig and recontracted it, but it may be that the company was able to achieve cost savings. 

The US independent intends to drill a number of high-impact wells this year. Up next is the Hippocampe prospect, in Mauritania’s C-8 block. This is northwest of the Marsouin find, with the company saying it is charged from a more oil-prone source. 

Kosmos said it intended to drill five wells over the next 18 months. Other prospects include the Lamantin, also in Mauritania and the Requin Tigre in Senegal. Furthermore, it plans to drill at least one well on the other side of the Atlantic Ocean, offshore Suriname. In the first quarter, Kosmos – and Galp Energia – began shooting a 3D seismic survey offshore Sao Tome & Principe. 

Edited by

Ed Reed

Editor

Any questions? Please get in touch