Offshore Drillers Eye Recovery by 2020
Battered oil and gas drilling companies are finally seeing piecemeal signs that the prices they charge for offshore rigs are bottoming out with Brent crude selling for more than $80 a barrel and some are forecasting a full turn in the market by 2020.At the depths of a global slide that took oil below $27 a barrel in early 2016, daily rates for leasing the most sophisticated floating drilling rigs had fallen to just $180,000 from $500,000 a day, as producer returns from North Sea, Latin America and Canadian drilling evaporated.Transocean Ltd…
Transocean to Buy Ocean Rig in $2.7 Bln Deal
Offshore oil driller Transocean Ltd said on Tuesday it would buy peer Ocean Rig UDW Inc in a $2.7 billion cash-and-stock deal, its second major acquisition this year as the company bets on a recovery in the offshore sector.The acquisition signals new optimism for offshore drillers, which were hit hard by the steep plunge in oil prices from 2014. Offshore projects, which are more costly than onshore work and take years to develop, became less attractive after oil prices fell to below $30 a barrel in 2016.Global crude prices have since recovered to above $70…
No Contact Yet Between Parties in Norway Oil Strike
A Norwegian union representing striking oil workers and employers' representatives were not talking to each other as of Thursday, days before a possible escalation of the industrial action.Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher."We haven't been contacted by the shipowners yet. They have to make the contact, they know our demands. Could be a strategic move from them to reach out before we shut more rigs on Sunday…
Hundreds of Oil Workers Strike in Norway
Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23,900 barrels of mostly oil…
Hundreds of Norway Oil Workers Go On Strike
Hundreds of workers on Norwegian offshore oil and gas rigs went on strike on Tuesday after rejecting a proposed wage deal, leading to the shutdown of one Shell-operated field and helping send Brent crude prices higher.One union said hundreds more workers would join the strike on Sunday if an agreement over union demands for a wage increase and pension rights was not reached.Royal Dutch Shell said that due to the strike it was temporarily closing production at its Knarr field, which has a daily output of 23,900 barrels of mostly oil…
Seadrill Suggests Consolidation for Drilling Market Recovery
On Tuesday, Seadrill CEO, Anton Dibowitz said consolidation of smaller offshore oil rig companies would help boost drilling market recovery in the drilling market. The statement comes a day the offshore rig firm emerged from Chapter 11 bankruptcy proceedings. Seadrill started trading new shares on the New York Stock Exchange and plans to list new shares on the Oslo Stock Exchange by end of July. Shares of Seadrill, controlled by Norwegian-born John Fredriksen, opened at $25 a share, but slid to $18 a share by 11:08am (ET).
McTiernan Appointed Non-Executive Chairman, Hurricane Energy
Steven McTiernan has been appointed as Non-Executive Chairman of the board of directors of Hurricane Energy plc, effective May 1, 2018. Dr. David Jenkins, who has acted as Interim Chairman of the Board since November 2017, will return to his previous role as Senior Independent Director on this date.Steven McTiernan has over 45 years of oil and gas industry and investment banking experience. He was a non-executive director of Tullow Oil plc for eleven years until December 2012, during its period of rapid growth, and served as its Senior Independent Director.
Transocean Acquires Songa Offshore
Transocean Ltd. announced today that it completed the previously announced compulsory acquisition of the remaining outstanding shares of Songa Offshore SE. All remaining shares in Songa Offshore were transferred to Transocean in accordance with the terms and conditions of the compulsory acquisition. Transocean then settled the compulsory acquisition by delivering Consideration Shares, Exchangeable Bonds and cash consideration, as applicable, to Songa Offshore shareholders. Songa Offshore’s shares remained listed on the Oslo Stock Exchange through March 28, 2018.
Offshore Rig Firms See End to Historic Downturn
Demand for offshore rig rental globally is starting to recover from its worst ever downturn, led by oil firms' growing demand for harsh-environment exploration and triggering multi-billion dollar tie-ups among drillers hoping to profit, executives said. While the 2014-2016 oil price crash caused firms to cut exploration budgets, ending a boom in rig demand and bankrupting many owners, energy companies are now seeking to replenish their hydrocarbon reserves. The nascent demand for harsh-environment rigs, particularly for North Sea drilling…
Transocean to Buy Songa Offshore
About 77 pct of Songa shareholders have so far accepted deal. Transocean, one of the world's biggest drilling rig operators, has agreed a deal to buy Norwegian competitor Songa Offshore for 9.1 billion Norwegian crowns ($1.1 bln), the two companies said on Tuesday. The deal, which would be mostly paid for in shares and convertible bonds, would strengthen Transocean's position in offshore drilling as Songa is Norwegian oil major Statoil's largest drilling service provider. The offer values Songa shares at 47.50 Norwegian crowns each, a 39.7 percent premium over Monday's closing price.
Activists Protest near Oil Rig in Norway's Arctic Sea Area
Environmental activists protested on Friday near an offshore rig contracted by Statoil in the remote Norwegian Arctic, where the firm is looking for oil and gas deposits. The Nordic country wants to open up northern areas for exploration to offset declining production in the south. Oil and gas production is Norway's leading industry, accounting for 20 percent of its economy. From the Greenpeace Arctic Sunrise ship, 11 campaigners launched inflatable boats carrying banners opposing Statoil's Songa Enabler oil rig, 275 km (170 miles) north of the Norwegian coast, in the Arctic Barents sea. One of the banners read "“The People Vs.
Norway Unions in Wage Deal with Drillers
Norwegian drilling rig operators have reached a wage deal with all three trade unions representing workers, averting the risk of a strike that could have hit exploration, the companies and the unions said on Friday. One of the three unions announced on Thursday afternoon it reached an agreement, while the two others followed later. A number of drilling firms operate off Norway - including Maersk Drilling, Transocean, Fred. Olsen Energy, Odfjell Drilling, Rowan Companies and Songa Offshore - renting out rigs to oil companies.
Statoil Downplays Risks Ahead of Arctic Drilling
Norway's Statoil on Monday played down concerns that drilling in the Arctic is risky, days before it kickstarts its drilling campaign in the Barents Sea, where the country believes around half of its remaining resources could be located. "We will start drilling the first well, Blaamann, during May ... followed by Kayak, Gemini (Nord), Korpfjell and Koigen (Central)," said a Statoil spokesman, adding each might take about a month to drill. All the wells are in areas free of sea ice thanks to the warm Gulf Stream…
Wärtsilä to Optimize Performance for Songa Offshore Drill Rigs
The technology group Wärtsilä has signed a five-year technical management and services agreement with Songa Offshore for four Cat-D type semi-submersible drilling rigs operating in the North Sea. Through the partnership with Wärtsilä, Songa Offshore ensures optimal performance and maximum availability of the Wärtsilä engines and thrusters on board the drilling rigs, which operate in extremely harsh conditions. This is possible with real-time knowledge of the actual condition of the equipment, provided by Wärtsilä's digital offering.
Well incident at Songa Endurance - Statoil
On Saturday 15 October a well control incident occurred on the drilling rig Songa Endurance. The well has now been secured with a blowout preventer around the drill string on the seabed and with a valve on the rig. Work is now being carried out to stabilise the well. Personnel without work assignments in connection with the incident will now be removed from the rig. The incident was reported to the company’s alarm centre at 9:50 am CET on Saturday. There were 107 people on board when the incident occurred. No injuries were reported and there is no risk of an oil spill.
Songa Offshore CEO Sees Difficult 2017 Market in Norway
Rig company Songa Offshore's CEO Bjoernar Iversen made the following comments at an oil conference in Oslo on Wednesday: * "When we look for tenders in the market, there are not many tenders to see out there, so 2017 seems to become a tough year on the Norwegian continental shelf when it comes to drilling." * "Hopefully we will see more scrapping and stacking (of rigs)." * "It's not sustainable to operate when you have day-rates around (the level of) operating expenses." * "The more we work on the DSME claim, the more certain we are that we have a rock-solid case." (Reporting by Ole Petter Skonnord)
Songa Restructures as Statoil Shortens Contracts
Norwegian rig firm Songa Offshore will issue new debt and shares worth up to $150 million and convert existing bonds of the same amount to equity as part of a plan to fix a liquidity shortfall, the company said in a statement on Tuesday. Songa's top customer, oil major Statoil, has meanwhile cut the contract length of two drilling rigs, the first by about one year and the second by six months, but still leaving Songa with an order backlog of $5.1 billion, it added. The refinancing plan includes an immediate bridge…
Statoil Cancels Songa Trym Rig Contract
Statoil has decided to cancel the contract with Songa Trym, four months before the expiration of contract on 4 March 2016. Statoil has previously notified Songa Offshore that the rig would be suspended for a period, and Statoil has tried to find other assignments for the rig after the suspension period and up to the expiration of contract. “We informed the supplier earlier in October about suspending the contract after the rig has completed the drilling operation on the Tavros well on the Visund field. Statoil has hoped for further activity in the remaining contract period…
Songa Offshore Sees Tough Year but Narrows Losses
Q4 operating loss $6.8 mln, against expected $7.3 mln loss. Norwegian rig company Songa Offshore expects a challenging 2015 amid fierce competition for fewer contracts despite reporting a slightly better than expected fourth-quarter operating loss on Friday. Rig operators are suffering in an already oversupplied market, with oil firms delaying or cancelling projects to save cash after a 10-year spending spree and a significant fall in crude prices since June. "We expect more rigs to leave the Norwegian Continental Shelf and be stacked going forward," the company said in a statement.
Songa Offshore Beats Street in Q1
Norwegian rig company Songa Offshore posted forecast-beating operating profit in the first quarter, but warned of continued fierce competition for few tenders in the market. "Songa Offshore is of the view that 2015 and 2016 will be two challenging years for the industry. We expect more rigs to leave the Norwegian Continental Shelf and some being stacked going forward," the firm said in a statement. The firm posted earnings before interest and tax (EBIT) of $20.2 million, above expectations for $16.4 million in a Reuters poll of analysts and $11.2 million a year earlier.
