Denmark based drilling rig operator Maersk Drilling said on Wednesday it has secured a long-term contract for its ultra-deepwater semisubmersible Mærsk Deliverer, for drilling at the Ichthys gas and condensate field in the Browse Basin offshore Western Australia.
The three-year contract from Inpex Australia and its joint venture partners is valued at $300 million, including mobilization, and includes two one-year options, Maersk Drilling. The contract is expected to commence in the second quarter of 2020.
Mærsk Deliverer, delivered in 2010, is currently operating offshore Timor-Leste.
“We are very pleased to have secured long-term work for Mærsk Deliverer adding significantly to our contract backlog in the floater segment. Inpex-operated Ichthys LNG Project is one of Australia’s largest resources projects and we look forward to supporting a successful operation for Inpex and joint venture participants,” said Jørn Madsen, CEO of Maersk Drilling.
“With this contract award we retain a well-balanced forward coverage in the floater market with long-term contracts while maintaining exposure to a market recovery.”
The Ichthys field is Located in the Timor Sea, about 220 kilometers offshore Western Australia and 820 kilometers southwest of Darwin. It covers an area of around 800 square kilometers in water averaging depths of around 250 meters.
It was discovered in 2000 and developed by Inpex in partnership with Total, Tokyo Gas, Osaka Gas, Chubu Electric Power, Toho Gas, Kansai Electric Power and CPC. First gas from Ichthys was achieved in July 2018.
Inpex estimates the Ichthys field contains more than 12 trillion cubic feet of gas and 500 million barrels of condensate. The project is expected to produce 8.9 million metric tons of liquefied natural gas (LNG) and 1.6 million metric tons of liquefied petroleum gas (LPG) per annum, along with more than 100,000 barrels of condensate per day at peak.