Drilling Rig Leiv Eiriksson Wins Work With Lundin

Published at 09:30AM - 09/03/16

Drilling rig Leiv Eiriksson wins work with Lundin Petroleum, confirming the news announced by Offshore Post back in February.

The Ocean Rig owned semisubmersible driller has been on contract to ‘Rig Management’ since early February 2012 having most recently been drilling exploration wells in the Norwegian North Sea for Total.

The consortium behind Rig Management is made up of exploration and production companies including Bayern Gas, Maersk Oil, OMV, RWE, and Total; formed with the aim of reducing the costs of offshore exploration through the shared use of assets.

With March 2016 bringing the scheduled end to the Rig Management contract, the reality of yet another Ocean Rig driller being stacked was high; spelling even more bad news for a company that has suffered four contract terminations in 2016 alone.

Leiv Eiriksson Wins Work With Lundin

However, Ocean Rig announced a new contract award for the Leiv Eiriksson drilling rig Wednesday, confirming the news broken by Offshore Post back in February.

According to Ocean Rig the Leiv Eiriksson will undergo a yard stay in Norway directly after finishing work with Rig Management.

The contract with Lundin Petroleum is then scheduled to start during the third quarter of 2016 for work offshore Norway.

No duration or day rate has been given, however Ocean Rig have confirmed that the deal covers drilling a minimum of three wells with an estimated backlog of US$23.6 million.

Contract Arbitration

Ocean Rig have also confirmed that they have commenced arbitration proceedings against both Total for the termination of the Ocean Rig Olympia drillship; and Premier Oil over the termination of the Eirik Raude semisubmersible drilling rig.

CEO of Ocean Rig, George Economou, said: “Terminations act as a reminder of the extremely challenging times facing the offshore drilling industry. The prospects for the industry remain bleak with limited visibility of new contracts and are likely to remain so at least until 2018.”

Drilling Rig  Termination

Tuesday brought further news of an escalating row between Statoil and COSL Drilling over yet another drilling contract  termination. The the latest development, Norwegian Unions have hit out at Statoil and demanded a meeting with the country’s Ministry for energy.

Last updated on 07:50PM - 10/03/16