Maersk Drilling Enters Market with New Customer

Karoon Energy Ltd. (OTCMKTS: KRNGF) has awarded Maersk Drilling (CPH: DRLCO) a four-well intervention contract offshore Brazil, Maersk reported Tuesday.

Under the 110-day contract, the Maersk Developer semi-submersible rig will perform well intervention on four wells at the Baúna field, Maersk Drilling noted in a written statement emailed to Rigzone. The approximately US$34 million firm contract, which includes rig modifications and a mobilization fee, will likely commence in the first half of 2022, pointed out the drilling contractor. In addition, the firm stated the contract includes options to add up to 150 days of drilling work at the Patola and Neon fields.

“Karoon is delighted to have signed this important contract and looks forward to working closely with Maersk Drilling,” remarked Julian Fowles, Karoon’s CEO and managing director.

According to Karoon’s website, Baúna sits in Concession BM-S-40 in the southern Santos Basin. The operator and sole participant in the field, Karoon notes that its planned intervention work in four of six production wells will comprise replacing two failed downhole electronic submersible pumps, installing gas-lift, and reopening a previously shut-in reservoir zone.

Morten Kelstrup, Maersk Drilling’s chief operating officer, observed the contract is significant for his company on two fronts.

“We’re delighted to enter into this contract with a new customer in the form of Karoon which will also see one of our drilling rigs operating offshore Brazil for the first time ever,” Kelstrup said. “We’re looking forward to entering this major offshore market and to working closely together with the Karoon team on the safe and efficient delivery of the workover at Baúna and potential development of Patola.”

Currently located offshore Suriname for Total (NYSE: TOT), Maersk Developer can operate in up to 10,000 feet (3,048 meters) of water.

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