Transocean has been hired to drill an offshore exploration well for Faroe Petroleum in the Norwegian North Sea.
Faroe Petroleum, a UK based offshore oil and gas exploration and production company, is looking to prove reserves at its Brasse prospect. The Brasse well will be south of the company’s Brage field.
If reserves prove commercially viable, Brasse is likely to be tied back subsea to either the Brage field or other nearby existing infrastructure.
The contract will see the Transocean Arctic drilling rig, start work on the well during the summer of 2016. No set time or duration of drilling has been given.
Faroe Petroleum has singed the agreement on behalf of the PL740 licence partnership, where it acts as operator holding a 50% stake. Norwegian based Core Energy holds the remaining 50%.
Faroe said that it sees its net share of the costs of drilling the well to come in under £2 million (US$3 m).
Commenting on the contract, Faroe Petroleum CEO, Graham Stewart, said: “We are very pleased to announce the signing of the drilling contract for this exciting Faroe-operated exploration well – one of three exploration wells in Faroe’s drilling programme for 2016 in Norway.”
“The Brasse prospect will be drilled using the Transocean Arctic, which is the same rig as we used to make the Pil discovery in 2014. Faroe has taken the opportunity to capitalise on the low cost environment to drill a material prospect which offers real potential for an early and low cost tie-back to the Brage field in which Faroe is an owner.”
“Despite the challenging industry backdrop, Faroe is robust with a strong cash position and balance sheet, and continues to perform very well, with production in line with our increased guidance.
“We look forward to an exciting three well exploration drilling programme for 2016 in Norway, which is firming up on cost efficient terms, and continue to evaluate the potential to take advantage of further good quality growth opportunities.”
Faroe also said that production at the offshore Enoch field has resumed. The field has been dogged by a series of delays since a subsea oil leak shut the field down back in 2012. The company said that early production rates have proved positive.