Kazakhstan-focused oil and gas company Caspian Sunrise has won a contract for its offshore drilling vessel, Caspian Explorer.
The company, which bought the shallow-water drilling vessel back in 2020, said Tuesday the vessel would drill a well in the summer of 2024 for Isatay Operating Company LLP ("IOC"),a Kazakh registered explorer, in which Italy's ENI is a leading participant.
The work is expected to take at least two months. The well is planned to be drilled to a depth of 2,500 meters.
The Caspian Explorer is capable of drilling to depths of 6,000 meters, and able to operate in water depths between 2.5 meters and 7.5 meters.
It operates principally between May and November as the Northern Caspian Sea is subject to winter ice.
"The total amount to be paid under the contract will depend principally on the number of drilling days. Based on the company's expectations the overall impact is expected to result in net income of approximately $15 million, spread over the life of the contract," Caspian Sunrise said.
If the well is successful the contract provides for a second well to be drilled on broadly the same terms as the first well.
"We continue to talk with potential hirers in respect of other charters for the Caspian Explorer," the company added.
Clive Carver, Chairman said:"We are naturally delighted to have signed the first major drilling contract for the Caspian Explorer. This is a significant separate source of funding for the Group and demonstrates the potential value of this unique asset. The funds generated are planned to be used to fund the Group's further development."