African-focused oil and gas exploration company Ophir Energy has signed a series of deep-water rig share agreements for its multiwell high-impact drilling programme.
Ophir is chaired by Tokyo Sexwale and controlled by Mvelaphanda Holdings.
The agreements, which are valued at about $200-million, give Ophir over 14 months of deep-water rig access during a three-year period starting in the first quarter of 2008.
Agreements finalised with Esso Exploration, a drilling subsidiary of ExxonMobil Corporation, and Seadrill Offshore relate to the provision of the ultradeep dynamically positioned drill ship, West Polaris.
An additional series of agreements with Esso and Larsen Oil & Gas, on behalf of Venture Drilling, is for the provision of the deep-water drill ship, Deep Venture.
In a statement, Ophir says that further to completing its initial drilling obligations, and appraising any discoveries, it may consider assignment of available rig slots, from both programmes, to other operators.
Ophir has secured the use of the West Polaris drill ship for 295 days as part of a 36-month contract between Esso and Seadrill. Use of the Deep Venture drill ship has been obtained for 135 days as part of an 18-month contract between ExxonMobil and Larsen.
The Deep Venture will be novated to Ophir for a continuous drilling programme starting in the first quarter of next year, while the West Polaris will be assigned to the company for three separate programmes (of about 100 days each) starting in 2009 and ending in early 2011.
Ophir has entered into agreements with Standard Bank, which has issued letters of credit to secure the company’s performance under the West Polaris agreements.
The company states that, where practical, Ophir will have access to ExxonMobil’s global service agreements to ensure continuity of personnel of the rigs, safer operations and reduced procurement costs.
“A global shortage of deep-water drilling rigs is causing a bottleneck for many companies involved in deep-water petrol exploration. There appear to be more commitments to drill than there are rigs to drill with,” says Ophir MD Dr Alan Stein.
“These agreements give Ophir the ability to go beyond its commitments in evaluating and appraising its extensive portfolio, as well as potentially acquiring access to new opportunities by way of rig assignments. We now have the capa- city to drill somewhere in the region of 12 to 15 deep-water wells, over the next four years, across a variety of plays and petrol provinces,” he continues.
In Ophir’s statement, Sexwale comments: “This commitment to rig contracts by Ophir, worth in excess of $200-million, is a signal of our determination and confidence. “Ophir was born from a desire to create a major African energy company and these transactions take us a significant step further towards that goal.”
The UK-registered Ophir was established in 2004, and has an interest in 17 exploration projects in nine countries in Africa, that cover a combined area of over 160 000 km2.
Your Ads At Here
