Diamond Offshore Drilling has said it is going to defend a move by Brazil’s Petróleo Brasileiro (Petrobras) to terminate its contract on the Ocean Valor semisubmersible early.
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The Ocean Valiant. Image from Diamond. |
The drilling contract between Petrobras and a subsidiary of Diamond Offshore Drilling, was extended in 2014, and was set to end in October 2018.
“The company does not believe that Petrobras had a valid or lawful basis for terminating the contract, and the company intends to defend the rights of its subsidiary under the contract,” Diamond Offshore stated in an 8K securities filing.
The termination was sent to Diamond on 30 August. According to Diamond’s fleet status report, the Ocean Valor has been on a standby rate of US$455,000 with Petrobras from early July to late August.
Diamond’s fleet status report also revealed a contract with Fieldwood Energy offshore Mexico set to begin in mid-January 2017, until early August 2017. The deal will see the Ocean Scepter jackup drill one well in 350m water depth, and comes with one option well.
Fieldwood, with partner Petrobal, is expected to drill offshore Mexico, as part of the country’s phase two bid round. The duo won Block 4, consisting of tow fields, Ichalkil and Pokoch, with 2P reserves of 68 MMbbl of light oil, and 92 Bcf of natural gas. The fields cover about 58q km, at 45m water depth.
Offshore the UK, Diamond Offshore entered a contract with Maersk Oil to drill 13 wells at 5500m water depth using the Ocean Valiant semisubmersible. The deal will run from Q4 2016 until Q4 2017.
The new contract values were undisclosed.
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