$370MM West Africa Contract Goes to Maersk Drilling

Tullow Ghana Ltd. (OTCMKTS: TUWOY) has awarded Maersk Drilling (CPH: DRLCO) an estimated four-year contract for the ultra-deepwater drillship Maersk Venturer and additional services, Maersk Drilling reported Thursday.

The contract, which commenced this month, covers a development drilling campaign at the TEN and Jubilee fields offshore Ghana, Maersk Drilling noted in a written statement emailed to Rigzone. The drilling contractor added the US$370 million estimated contract value excludes additional services and potential performance bonuses.

“We’re thrilled to have firmed up this long-term contract for Maersk Venturer, bringing it back to a basin where the rig and its crew previously performed stable and highly efficient operations for Tullow,” remarked Maersk Drilling CEO Jørn Madsen in a written statement emailed to Rigzone. “We’re delighted to have started up operations again in Ghana where we will continue our work with the Ghanaian community, our partner Rigworld, and other local suppliers who have contributed to our successful operations in the region.”

According to Maersk, the contract includes a progressive day rate structure for the full duration. The company pointed out, however, that provisions in the contract do allow – after an initial 18-month period – a shift to a market-linked day rate structure and early termination for convenience by Tullow Ghana.

Maersk Venturer is currently operating at the Jubilee field, added the drilling contractor.

In early February, Rigzone reported that Maersk Drilling had secured a conditional letter of award from Tullow for the long-term Ghana campaign.

To contact the author, email mveazey@rigzone.com.