Total Awards Suriname Drilling Contract

Total E&P Suriname, Suriname Branch (NYSE: TOT) has awarded Maersk Drilling (CPH: DRLCO) a conditional letter of award (CLOA) for a two-rig campaign offshore the South American country, Maersk Drilling reported Monday.

The CLOA calls on Maersk Drilling to supply the Maersk Developer semi-submersible rig and Maersk Valiant drillship for an exploration and appraisal project in Suriname’s Block 58, the drilling contractor noted in a written statement. The firm added the CLOA is conditional upon finalization of the formal contract, along with other customary conditions.

“We’re delighted to get this opportunity to add further to our long-standing relationship with Total through a two-rig contract, building on our previous collaboration on deepwater exploration projects and on Maersk Drilling’s recent experience with starting up operations in Suriname for Maersk Developer,” commented Morten Kelstrup, Maersk Drilling’s chief operating officer.

The drilling contractor stated it expects the campaign to begin early next year, and it estimates a firm combined duration of 500 days. It added the estimated firm total contract value is approximately US$100 million and includes rig upgrades and integrated services provided.

Total and Apache (NASDAQ: APA) reported a major oil discovery in Block 58 in July of this year. At the time, Total stated that an early 2021 appraisal campaign will help it to better characterize the find.

The Maersk Developer semisub is operating offshore Suriname and the Maersk Valiant drillship is warm-stacked in Aruba, having completed a campaign in Mexico earlier this year, Maersk Drilling noted.

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