Drilling Featured News

DSME delivers drill ship to Transocean on schedule

Daewoo Shipbuilding & Marine Engineering Co. (DSME) said on Tuesday that it is on schedule to deliver this year’s five orders in offshore drilling facilities by October after it shipped off on Tuesday a drill vessel ordered by U.S.-based Transocean. The Korean shipbuilder won the 620 billion won ($539.2 million) order from the world’s largest offshore drilling contractor in 2012. The DSME-12000 model is 238-meter long and 420-meter wide, the largest drill ship developed by DSME. Built for deep-sea drilling, it is capable of drilling up to 12 km in sea as deep as 3.6 km. Transocean, one of DSME’s loyal clients, signed its first deal with the company in 2006 and so far has ordered 12 drill ships. The contractor has remained a trusted partner of DSME, paying most of its delivery payment u...

DSME gets $50 mn from clients to dismantle canceled order for offshore structure

South Korea’s Daewoo Shipbuilding & Marine Engineering Co. (DSME) reached out-of-court settlement with its client and partner, receiving $25 million each from the European offshore energy company Dong Energy and Technip France SAS in fees to dismantle offshore drilling order that was cancelled close to its completion. The Korean shipbuilder won the contract to build drilling platform from Dong Energy in February 2012 in a consortium with Technip. The contract was worth $560 million, of which $200 million was reserved for DSME in charge of designing and building upper structure. The Danish state-run energy company terminated the contract in March 2016 and refused to pay penalty cost blaming the shipbuilder for the delay in delivery. DSME took the matter to International Arbitration clai...

Daewoo Shipbuilding Delivered Offshore Plant to Statoil as Scheduled

Daewoo Shipbuilding & Marine Engineering announced on June 12 that it delivered an offshore plant to Statoil, a multinational energy company, in accordance with their contract signed in 2012.   The total value of the project rose from US$1.8 billion to US$2.7 billion after a change in its design and specifications. By delivering it to Statoil, Daewoo Shipbuilding & Marine Engineering completed the delivery of the second one of its five offshore plants scheduled to be delivered this year. The fixed platform is an upper structure for crude oil production, has a weight of approximately 40,000 tons, and is capable of producing 2.5 million barrels of crude oil a month. The facility, which can endure the harsh conditions of the North Sea, is slated to be built on a continental shelf in t...

Exxon extends Maersk drillship contract. Dayrate slashed

Danish offshore driller Maersk Drilling has secured a contract extension for the ultra-deepwater drillship Maersk Viking with ExxonMobil. The estimated value of the contract extension is $22.5 million, with a duration of 150 days.  Maersk Viking has been operating for ExxonMobil on the Julia field in the U.S. Gulf of Mexico since delivery from the Samsung Heavy Industries (SHI) shipyard in 2014. The original contract was scheduled to end in July 2017. With the extension, Maersk Viking will now be in operation for ExxonMobil until December 2017. While Maersk doesn’t address the dayrate specifically, a back-of-the-envelope calculation shows the dayrate for the extension period is some $150.000. The original three-year contract had a dayrate of more than $550.000. “I’m truly pleased on behalf...

Cobalt slips deeper into red on Shenandoah impairment

American oil company Cobalt International Energy sank deeper into the red during the first quarter of this year due to an impairment related to the Anadarko-operated Shenandoah discovery in the Gulf of Mexico in which Cobalt owns a 20% working interest.  The oil company on Monday posted a net loss of $306.3 million for the first quarter of 2017, compared to a net loss of $46.6 million for the first quarter of 2016. According to the company’s report, the increase in net loss is mainly associated with the write off of Shenandoah well costs and increased interest expense related to Cobalt’s December 2016 and January 2017 debt exchanges. Anadarko recently completed drilling operations at the Shenandoah-6 appraisal and sidetrack well, which did not encounter the oil-water contact in the eastern...

Korean Foreign Affairs Minister to Meet Angolan Counterpart to Solve Drillship Deals

South Korean Minister of Foreign Affairs Yun Byung-se will meet Angolan foreign minister to seek solutions to the Sonangol case. Daewoo Shipbuilding and Marine Engineering (DSME) currently has a liquidity crisis as it failed to receive the payment of 1 trillion won (US$884.1 million) for drill ships from Angolan state oil firm Sonangol due to the delay in delivery. A senior official from the government said on April 6, “Angola’s Minister of Foreign Affairs Georges Chicoti will visit South Korea in the middle of this month, and Minister Yoon will meet him to discuss the Sonangol problem.” The government was considering a plan for the Financial Services Commission (FSC) Chairman Lim Jong-ryong to meet Angolan foreign minister but it finally chose Yoon. Sonangol has made little progress...

Hyundai Samho Heavy finds a buyer for abandoned oil rig

South Korea’s Hyundai Samho Heavy Industries Co. removed elephantine facility from its dock after it found a new buyer for a semi-submersible drilling rig abandoned by its original contractor.

ExxonMobil Highly Likely to Become Charterer of Sonangol’s Drillships Made by DSME

Angola’s state-run oil company Sonangol are having the last minute negotiation with ExxonMobil Corp., a U.S.-based oil major, on charter contracts for two drillships delievered from Daewoo Shipbuilding & Marine Engineering (DSME). Sonangol needs to secure a charter in order for DSME to deliver two drillships and secure the liquidity of 1 trillion won (US$879.89 million). As the company is making progress in the negotiations, all eyes are on whether rumors on DSME‘s April crisis will fizzle out. According to industry sources, DSME president Jung Sung-leep said, “Sonangol is negotiating charter contracts with two to three oil majors and ExxonMobil is the most probable charterer at this time.” Sonangol ordered two drillships for US$1.24 billion (1.41 trillion won) in 2013 and ...

SembMarine makes massive turnaround

Sembcorp Marine recorded a massive earnings turnaround in the fourth quarter to return to the black in spite of challenging conditions in the offshore and marine market. The rig-builder posted a net profit of $34.3 million for the three months ending Dec 31 last year – a stark contrast to the net loss of $536.9 million in the same period a year earlier. The improved earnings were due to smaller losses from associates and a gain on the disposal of a financial asset arising from the step-up acquisition of Gravifloat, SembMarine reported yesterday – although these were offset by higher finance costs and impairments of financial assets. Turnover fell 37.5 per cent to $829.9 million, mainly due to lower revenue recognition for rig-building projects as customers deferred deliveries. ...

Liquidity Crisis from Norway May Plague Korean Shipbuilders

Seadrill is a major corporate customer of Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering (DSME), and Samsung Heavy Industries, as it explores deep sea oil for global oil companies such as Exxon Mobil and BP

Oil spill near ExxonMobil drilling platform in Bass Strait to be investigated

An oil spill at an ExxonMobil  platform in the Bass Strait is being investigated by the federal regulator, after the discovery of an oily sheen on waters around the rig. The spill comes less than 18 months after a fire raged on the same platform for nine hours before it could be controlled. And in 2013, Exxon was responsible for a spill from another rig in the Bass Strait. Environmentalists have said the spill is a reminder of the inherent dangers of offshore oil drilling, and called for planned oil drilling in the Great Australian Bight to be stopped.  North Sea or Great Australian Bight, oil drilling is always a risky business John Sauven Read more On Thursday, the National Offshore Petroleum Safety and Environmental Management Authority (Nopsema) posted an alert saying Esso, a company o...

Maersk Drilling hires SubC Partner for rig inspections

Danish offshore inspection specialist SubC Partner has signed a deal with Maersk Drilling for inspection services. The company will, under a three-year framework agreement, carry out offshore underwater inspection by ROV of Maersk’s offshore drilling rigs worldwide. SubC Partner says it has developed special solutions that enable the inspection work to be carried out offshore rather than yard stay, thus lowering the operational costs. The company said the deal encompasses inspection of both semi-submersible drilling rigs and drillships. Offshore Energy Today has reached out to SubC Partner, seeking more info. We will update the article with any response we receive. In related news, Maersk Drilling on Tuesday said it Maersk Drilling has secured a one well contract with Repsol Colombia for t...

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