Sinopec Secures Drillship for JDZ

Equator Exploration Limited said that Sinopec, as operator on behalf of the participants in Block 2 of the Nigeria and Sao Tome and Principe Joint Development Zone (JDZ), has entered into an agreement with Aban Abraham Pte Ltd for the provision of the Aban Abraham deep water drillship to drill a well in the second half of 2008.

The agreement, which has been entered into jointly with Addax Petroleum, has secured the Aban Abraham to drill up to ten wells in total. These wells will be shared across those blocks in which Addax and Sinopec respectively operate. The agreement contemplates five firm well slots and five optional well slots. Under a separate rig sharing agreement, Sinopec will be allocated one of the firm well slots that will fulfill the commitment well as agreed under the Block 2 Production Sharing Contract. Additionally, and as required, a share of the optional slots may be available. The day-rate for the rig is a maximum of $410,000 per day.

The JDZ was created through an agreement between the governments of Nigeria and Sao Tome & Principe in 2001 whereby revenues derived from the JDZ will be shared 60:40 between these governments respectively. Block 2 was awarded to Equator and the other participants in March 2006. Subsequent to a farm-in to the interest of another participant, A & Hatman, Equator has a 9% interest, of which 0.25% is allocated to another partner. The other participants are Sinopec, ERHC Energy and Addax Petroleum, who together have 65%, ONGC (13.5%), A & Hatman (2.5%), Amber Petroleum (5%) and Foby Engineering (5%). In its News Release of 11 January 2007, the Company reported the Best Estimate Prospective Resources for its net interest as prepared by Netherland, Sewell & Associates Inc. On an un-risked basis net to Equator they are 121 million barrels of oil and 168 billion standard cubic feet of gas, while on a risked basis they are 32 million barrels of oil and 50 billion standard cubic feet of gas.

Aban Abraham Pte Ltd is a wholly owned subsidiary of Aban Offshore Limited, publicly quoted on Indian stock exchanges. The Aban Abraham is a deep water drill ship currently undergoing extensive refurbishment and modification at the Sembawang Shipyard in Singapore. When refurbishment is completed later in 2007 the drill ship will be capable of drilling in water depths of up to 2,100 meters (6,900 feet) having been upgraded from second generation to fourth generation capability. Once commissioned, the Aban Abraham will undertake drilling operations for a third party operator before starting drilling operations for Sinopec and Addax Petroleum.

Equator Exploration Limited engages in the exploration and development of oil and gas projects in highly prospective West Africa. Equator's objective is to build a diversified portfolio of exploration, appraisal and production assets in the region. The Company has exploration interests in the territorial waters of Nigeria and of Sao Tome & Principe as well as in the Joint Development Zone between the two countries.

Company: ONGC more info
Operates 41 Offshore Rigs
Manages 8 Offshore Rigs
 - Venezuela's PDVSA To Tap Oil Customers To Pay $449MM To ONGC (Nov 15)
 - Sources: India ONGC Strikes 'Good' Offshore Oil, Gas Find (Sep 20)
 - India To Acquire Seismic Data Of 48,000 Line kms To Boost Oil, Gas Output (Sep 12)
Company: Sinopec more info
 - Lead a Chinese Oil Giant and Get a Fraction of Your Peers' Pay (Dec 27)
 - Report: Quarter Of Oil Refineries Risk Closure Under Climate Goals (Nov 02)
 - Sources: China's Sinopec Mulls US Oil Projects Ahead Of Trump's Visit (Oct 31)
Company: Addax more info
 - Chinese-Owned Oil Firm Addax Shuts Offices After Swiss Bribery Case (Aug 07)
 - North Sea Decom: 'Campaign Approach' Required to Drive Down Costs (Sep 15)
 - Addax Extends Yinson's FPSO Charter Contract for $129M (Oct 20)
Company: ERHC more info
 - ERHC, ANP-STP to Start PSC Talks in Mid-Nov. (Oct 18)
 - Sinopec Gets JDA Nod for Extension of Exploration Phase in Nigeria (May 19)
 - ERHC to Extend Exploration Phase I in JDZ Block 2 (Oct 14)
Company: Netherland, Sewell & Associates, Inc. more info
 - Nicolet Permit's Utica Shale Contains OGIP of 8.67 TCF (Feb 09)
 - Questerre's Utica Shale Discovery Assessed at Over 4 Tcf (Sep 01)
 - Stone Energy Boosts Year-End Natural Gas Reserves (Feb 10)
Company: Equator Exploration more info
 - Equator Updates on Status of Offshore Nigeria Prospecting Licenses (Jan 26)
 - Equator Exploration Secures Short-Term Funding (Dec 24)
 - Equator & Peak Dance Around Bilabri (Jun 25)
Company: Aban Abraham Pte Ltd more info
 - Sinopec Secures Drillship for JDZ (Mar 08)
Company: A & Hatman more info
 - Sinopec Secures Drillship for JDZ (Mar 08)
Company: Amber Petroleum more info
 - Sinopec Secures Drillship for JDZ (Mar 08)
Company: Foby Engineering more info
 - Sinopec Secures Drillship for JDZ (Mar 08)
For More Information on the Offshore Rig Fleet:
RigLogix can provide the information that you need about the offshore rig fleet, whether you need utilization and industry trends or detailed reports on future rig contracts. Subscribing to RigLogix will allow you to access dozens of prebuilt reports and build your own custom reports using hundreds of available data columns. For more information about a RigLogix subscription, visit