Drilling Rig Forced On Zero Rate Claim Awilco

Published at 12:49PM - 27/04/16

Offshore drilling contractor, Awilco, have claimed that Apache Corp is preventing their WilPhoenix drilling rig from working.

The UK offshore drilling firm have made the claim, following the $42.5 million completion of the WilPhoenix rig’s yard stay, adding that Apache’s actions are forcing the drilling rig to remain on a zero day rate.

Apache deny this.

WilPhoenix Yard Stay

The WilPhoenix is currently on a three year contract to Apache North Sea, a contract it commenced back in the scone half of 2014.

The semisubmersible drilling rig entered Able’s Hartlepool shipyard on the 24 November 2015, for a planned yard stay, with a scheduled duration of 60 days.

The yard stay workscope included installing a new uprated BOP, upgrading the choke and kill manifolds to cope with High Pressure High Temperature (HPHT) drilling operations, and a five yearly certification by DNV.

Yard Stay Drags On

Back on 29 February, Awilco released a statement, outlining that the WilPhoenix remained in Hartlepool, awaiting final acceptance from Apache.

On the 4 April the company released a further statement, that started to show the beginnings of things not quite going to plan. The statement read:

‘The yard stay for WilPhoenix is taking longer than anticipated and in the meantime the rig remains berthed at Hartlepool on zero dayrate.’

‘Awilco Drilling is working expediently to close out the yard stay in co-operation with Apache North Sea Ltd.’

WilPhoenix Ready To Drill

Today Awilco have released yet another statement, but this time, openly claiming that in their opinion, the WilPhoenix has completed its yardstay.

The statement is a public declaration by Awilco, that the WilPhoenix and its crew, are both ready and are now waiting for Apache. The statement not only puts the ball firmly back in Apache’s court, but openly states that the drilling rig is now no longer on a zero day rate, but the agreed standby.

Forced On Zero Rate Claim Awilco

However, Awilco’s statement also adds that Apache North Sea have not agreed to this, and that the contractual standby rate will not be paid. The statement read:

‘Apache North Sea Ltd. does not agree that the rig is ready to drill nor that Awilco Drilling is entitled to standby rate at this point.’

‘According to Awilco, the work cam in under the original budget of $42.5 million, and is now complete.

Offshore Post is still waiting for Apache to get back with comment on the issue. Because of this, we are currently unable to clarify exactly what is preventing Apache from accepting the work as complete.

The WilPhoenix drilling rig remains in Hartlepool, 156 days into its 60 day yard stay.

WilPhoenix Drilling Rig

The WilPhoenix drilling rig was delivered in 1982 by Gotaverken Arendal shipyard, Sweden.

A midwater semisubmersible, WilPhoenix has the capability to operate in a maximum water depth of 1,200 feet (366m), and drill to a maximum depth of 25,000 feet (7,620m)