Equinor Awards Seadrill Ltd Four Year Contract to Drill in Bacalhau Field

Equinor Awards Seadrill Ltd Four Year Contract to Drill in Bacalhau Field

Equinor Brasil Energia Ltd has awarded Seadrill Management S PTE Ltd a four year contract for the West Saturn drillship to start drilling in Bacalhau field in Brazil in the Q1 of 2022, according to  press release issued by Equionr.

Per the contract, the target is to drill six wells before production begins in 2024. The contract also includes four one-year options. In addition, Mobilization, upgrades, and integrated services are included in the overall contract value. The total contract value of $ 380 million is contingent on a final investment decision made by the partnership for Bacalhau.

Mette Halvorsen Ottøy, Chief Procurement Officer commented on the contract saying “In this contract we have secured a fixed rate for the initial firm period, which includes a performance element that enables the supplier to increase its profit by completing safe and efficient operations. We have also agreed on general terms for options, and we believe this contract gives the Bacalhau project good incentives for a long drilling campaign.”

For his part, Erik G. Kirkemo, Senior Vice President for Drilling and Well, mentioned: “Under this contract, we have a high-spec drill ship, equipped with features such as a double derrick and automated drilling control and we look forward to continuing this collaboration with Seadrill in Brazil, where we are familiar with the drill ship from previous operations.”

Bacalhau field is Equinor’s deepest high-pressure field with a water depth of about 2,000 meters(m). West Saturn is a seventh-generation drill ship, capable of drilling to depths up to 3,600m.

It should be mentioned that the partners in Bacalhau are Equinor, the operator and owns 40%, ExxonMobil owns 40%, and Petrogal Brasil owns 20%. Pré-sal Petróleo SA (PPSA) is a regulatory agency, not an investor.


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