Pacific Drilling Wins Two-Well Mexico Contract

Murphy Oil Corp. has contracted the Pacific Sharav drillship for two wells in Mexico, Pacific Drilling S.A. reported late Wednesday.

According to the latest fleet status report on Pacific Drilling’s website, the contract covers two firm wells and includes a one-well option. The drilling contractor also noted that it expects the contract period to run from Nov. 2020 to Feb. 2021. The fleet status report shows a contractual dayrate of $230,000. In addition, it indicates the Pacific Sharav will be contracted to Chevron in the U.S. Gulf of Mexico until this May.

“Our reputation for operational excellence and customer service resulted in a new relationship with Murphy Oil Corp. for Pacific Sharav in Mexico,” Pacific Drilling CEO Bernie Wolford stated in the company’s fourth-quarter and full-year 2019 earnings announcement Wednesday.

Built in 2014, the Pacific Sharav can operate in up to 12,000 feet (3,657 meters) of water and drill to 40,000 feet (12,186 meters), according to the specifications on the company’s website.

Wolford also offered his company’s perspective on the evolving competitive landscape.

“As we look ahead, we see significant uncertainty in the global markets from the demand reduction related to COVID-19 and recent changes to oil supply and pricing strategies,” Wolford commented. “Through late 2019 and early 2020, we experienced substantial tightening of ultra-deepwater rig supply in the U.S. Gulf of Mexico and more limited supply of active rigs in other regions. At the same time, there are more active tenders in the market today than we have seen at any one time since 2014.”

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