The eight-well campaign, which is expected to take just over one year to complete, has been created by the well construction project management team in the group's Asia Pacific business unit. A variety of Australian and international exploration and production companies are cooperating in the program, which was developed on the back of AED Oil Limited's (AED) Puffin development. Once the rig had been contracted by Peak, the operating group was then expanded to include Santos, one of Australia's largest hydrocarbon producers, and ENI and ConocoPhillips, two internationally recognized operators. One of the major differentiators between this project management agreement and others is the holding of the service contracts by Peak. Under the agreement, Peak will hold the contracts for the Stena Clyde semisub, the supply vessels, the third party service contracts and the logistics and supply base services. Participating in the Peak coordinated rig share agreement is providing the client operators with the financial benefits and synergies of a multi-well program that is normally only available to operating companies with substantial exploration and development programs. These benefits include, amongst others:
This is the first time in Australian operations that a well construction project management company has established a shared program of activity for operators.
Peak will provide a complete well construction project management and procurement service for most elements of AED's three Puffin wells. The campaign will involve the drilling and completion of two development wells; Puffin-7 and Puffin-8 and the drilling of the Puffin-9 exploration well.
The three wells are located in AED's permit area, AC/P-22 in the Bonaparte basin, approximately 80 kilometers south west of the Jabiru and Challis oil fields. The Puffin-7 production well will be completed with a 460m horizontal lateral. Puffin-9 will be a low angle exploration well to 3000m below the seabed. At the time of writing, the team was finalizing the well design for the Puffin-8 well.
Peak will act as AED's drilling department throughout the campaign. Their contract with AED involves the management and execution of the detailed well design and planning process, materials procurement, tendering and contracting for all services, the development and submission of all well construction project documentation and related Health, Safety and Environment management system documentation, provision of the onshore and offshore operations management teams which includes engineering, operations management, accounts, procurement and logistics, supply base management, drilling supervisors, materials coordinators and well-site geologists. The semisubmersible Stena Clyde has been contracted for the program.
Drilling operations commenced on the Puffin-9 well on March 8th, with the P50 campaign time for completion of the 3 wells being 95 days.
Peak will provide a range of contract services for the other client operators. The scope of work for the already completed 2 well ENI campaign was to provide the rig and supply vessels and the offshore management team, which included drilling supervisors and well-site geologists. The scope of work for Santos' one well and ConocoPhillips' two well campaigns includes the provision of the rig, supply vessels, third party, logistics and supply base services. Peak is also providing the onshore and offshore rig management teams which include operations management, accounts, procurement and logistics, supply base management, drilling supervisors, materials coordinators and well-site geologists.
The Peak Group's Asia Pacific operations manager Nick Muecke said: "This is a unique venture where, for the first time in the history of the Australian offshore industry, a project management team has put together a multi-client program. We hope this will become a blueprint for future operations in the Asia Pacific region, following the successful application of this methodology in the North Sea, the Middle East and West Africa.
"It's a landmark deal for Peak which, strengthens our portfolio of clients and enhances Peak's well construction project management reputation as a key provider of fully integrated well construction services in the Asia Pacific region. Peak's securing of the Stena Clyde contract was the catalyst to establishing this exciting venture, the success of which can only enhance the entrepreneurial spirit and drive of our clients."
Managing Director of AED Oil Limited, Dr Ken Tregonning, said: "Working with Peak has made the operational activities associated with getting the Puffin Development program off the ground a very straightforward process. Having Peak as our drilling department with established management systems in place, enabled us to demonstrate existing competence in well construction project management, which dramatically simplified the work required to gain regulator approval for the Puffin Development. Peak's securing of the rig and associated contracts, and then "farming them out" to other operators, substantially reduced the cost and time associated with getting the project up and running and also introduced flexibility into our campaign which will enable us to capitalize on information gained through the drilling of Puffin 9."
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