Xcite Energy Cancels Rowan Rig
Xcite Energy reported Friday that it has cancelled its option for a jackup drilling unit from a subsidiary of Rowan Companies Incorporated.
The rig contract was originally agreed in February 2011 and amended a year later ahead of a pre-production extended well test on the Bentley field in the North Sea, which was completed in September 2012.
Xcite said that following the extended well test, which led to an increase in reserves and an updated field development plan, the company no longer believes the terms and structure of the rig option are appropriate for its commercial objectives. The firm added that it is in dialog with other drilling rig providers to develop alternative solutions.
Xcite CEO Rupert Cole commented in a company statement:
"We are grateful for the provision of the Rowan Norway and the associated drilling support during the successful extended well test last year. The amendments to the Bentley field development plan have given us the opportunity to construct a more commercially attractive and longer term approach to drilling up the field, and we are encouraged by the alternative structures that the industry has to offer.
"We look forward to updating the market in due course on the outcome of this initiative, which could further enhance the economics of the Bentley field development."
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Manages 22 Offshore Rigs
- Rowan Lays Off Another 50 Offshore Workers (Jun 26)
- Rowan to Lay Off 150 Offshore Workers (May 31)
- Rowan Idles Rig, Will Lay Off Up To 110 Workers (Nov 28)
Company: Xcite Energy Resources Limited more info
- Xcite Confirms $35-per-Barrel Costs for Bentley Field (May 29)
- Xcite Signs Rig Provision Agreement for Bentley Field (Nov 17)
- Xcite Signs Services Deal with Baker Hughes for Bentley Field (Oct 20)