Oil and gas exploration company Bahamas Petroleum Company has signed a contract with Stena Drilling to provide drilling rig for its first exploration well, Perseverance #1, offshore The Bahamas.
Under the contract, Stena Drilling will provide sixth-generation drilling rig, including the integrated supply of a Managed Pressure Drilling (MPD) unit.
The rig will be used by Bahamas Petroleum to drill Perseverance-1 exploration well, scheduled to commence as early as the fourth quarter of 2020.
The Perseverance #1 drilling operation has been postponed from the first half of 2020 due to the Covid-19 pandemic.
Perseverance #1 well to target recoverable P50 oil resources 0.77 billion barrels
Bahamas Petroleum said that the Perseverance #1 well will target recoverable P50 oil resources 0.77 billion barrels, with an upside of 1.44 billion barrels.
Bahamas Petroleum Company CEO Simon Potter said: ” This decision – to lock in a rig now, at an already favourable rig rate, rather than try and second guess what markets and availability will look like later in the year – speaks to our intent to ensure Perseverance #1 is drilled at the soonest opportunity, and provides the necessary certainty needed for operational planning.
“Acting decisively in this way is consistent with our single-minded focus on technical delivery.
“Importantly, the commercial parameters in the rig contract have allowed us to not only revise down significantly the anticipated well cost, but also clears the way to revisit our funding strategy with adequate time to ensure we have the funds available as and when we need them, on the best possible terms.”
Based on the duration of drilling activities, the contract is estimated to range between $8m and $11m.
Bahamas Petroleum said that the contract replaces its previous plans to use a Seadrill-owned rig for drilling the Perseverance #1 well.
