Rig Deal for Campaign off Namibia Confirmed

  • A subsidiary of Galp Energia, as the operator of Petroleum Exploration License 83 (PEL 83) in the heart of Namibia’s Orange Basin, had signed a contract with SFL Corporation for the Hercules semi-submersible rig.
  • The hydrocarbon potential of the Orange Basin is being actively investigated as both oil majors continue to progress with multi-rig exploration and appraisal activities on their respective licenses.  

On Monday, 8 May 2023, Portuguese oil and gas company Galp signed a contract for a semi-submersible rig owned by SFL Corporation (SFL) and managed by Odfjell Drilling, which will be used for an initial exploration drilling campaign at a licence located offshore Namibia close to Shell’s Graff and TotalEnergies’ Venus discoveries. Galp’s partner, Canada-based Sintana Energy, said that a subsidiary of Galp Energia, as the operator of Petroleum Exploration License 83 (PEL 83) in the heart of Namibia’s Orange Basin, had signed a contract with SFL Corporation for the Hercules semi-submersible rigThe confirmation comes only days after Odfjell Drilling and SFL announced the deal with Galp without providing information about the license containing the prospect that would be drilled.

The 2008-built Hercules sixth-generation deepwater and harsh environment semi-submersible rig is of GVA 7500 design. DSME constructed it in South Korea and can accommodate 180 people. It can operate in water depths of 10,000 ft, and its maximum drilling depth is 35,000 ft. According to Santana, the contract for the rig is for two wells plus optional well testing, and the drilling programme, including mobilisation, is projected to start in the fourth quarter of 2023. Without any options, the duration of the contract is approximately 115 days, including mobilisation to Namibia, as the rig has a deal with ExxonMobil in Canada before it can start its transit to Namibia.

Knowledge Katti, Chairman and Chief Executive Officer of Custos and a Director of Sintana remarked: “Our Orange Basin licenses, PEL’s 83, 87 and 90, are ideally located at the heart of the play. The significant prospect of PEL 83, together with its relatively shallow water depth (250 – 2,550 metres), position it to be one of the most significant and profitable developments in Namibia.”

Furthermore, PEL 83 is located immediately north of Shell’s PEL 39 where the basin opening discoveries at Graff-1, La Rona-1 and Jonker-1 were drilled. It is also situated close to TotalEnergies’ multibillion-barrel Venus-1 oil discovery on PEL 56. The hydrocarbon potential of the Orange Basin is being actively investigated as both oil majors continue to progress with multi-rig exploration and appraisal activities on their respective licenses.  

Source: Offshore Energy

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