Industry News

Shell, PTTEP dial up Sarawak Drilling with Noble Rig

Shell and PTT Exploration and Production (PTTEP) have decided to expand their platform engagements in Malaysia. Noble Corp. announced that Sarawak Shell Berhad and Sabah Shell Petroleum Co Ltd (SSB/SSPC) have pursued three single-well options for the drillship Noble Viking. One of these wells was transferred to PTTEP for the Rotan NFE appraisal well offshore Sabah. The training work should start well in December 2023 and the work will last for 21 days. Noble Viking is also working on a six-well drilling campaign for SSB/SSPC, with two wells secured to completion. That adds another 90 days to drilling in the Majoram deepwater field. As such, Noble Viking will operate until the second quarter of 2025.

The contract extension is 111 days, and the cost of the contract is 49 million dollars. This includes some well-directed pressure drilling (MPD) payments. "Company were delighted to continue our excellent partnership with these world-class operators in Malaysia on the Noble Viking, which Shell recently selected as the Global Floater Rig in recognition of the drillship's excellent performance on the SSB Gumusut-Kakapi project. /SSPC," said Blake Denton, Noble's director of marketing and contracts.  "This summer, Noble's Tom Prosser will join Noble Viking to sign contracts with Shell and PTTEP, and company expect that having two of the most advanced platforms in the country with long-term contracts will allow us to achieve additional efficiencies." Noble Viking has a contract with PTTEP through this month at a daily rate of USD 378,900. He will start work at Shell in November and his daily rate will rise to USD 407,800.

Noble Tom Prosser has two contracts for 14 wells offshore Sarawak. The first contract will start this month and the second in February or March next year.  PTTEP also extended the Velesto Energy jackup contract. Naga 3 operates under a contract consisting of two fixed wells at a contract cost of USD 13 million.

Shell and PTTEP have struck another rig-sharing deal, juggling the Noble Viking for another three wells offshore Sarawak. The two companies have been drilling in Sarawak for several years, and they have a number of joint ventures in the region. The Noble Viking is currently drilling the Rotan-NFE appraisal well in Block SK417, and it will then move on to drill the Lang Lebah-3 appraisal well in Block SK410B. The final well will be the Kebali-3 appraisal well in Block SK310. The drilling campaign is expected to take about 150 days, and it is expected to cost around USD 100 million. The results of the drilling campaign will help to determine the commercial viability of the three fields.

This is not the first time that Shell and PTTEP have shared a rig in Sarawak. In 2021, they shared the Noble Clyde Boudreaux for a drilling campaign that included the Lang Lebah-2 appraisal well.