Thursday, October 28, 2021

CGX taps Danish driller for Guyana wildcat

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Canadian exploration partners, Frontera Energy Corporation and CGX Energy Inc, announced Thursday that an agreement was signed with Maersk Drilling Holdings Singapore Limited for the provision of a semi-submersible drilling unit, the Maersk Discoverer, and associated services to drill the Kawa-1 well on the Corentyne block.

According to the statement, the joint venture partners are targeting an early third quarter spud for the Kawa-1 well which is a high-graded prospect in the northern region of the Corentyne Block.

Maersk Drilling said in a statement that the contract has an estimated duration of 75-85 days. “It’s the first time we are working for CGX and we are honored to join forces with their team in the Caribbean basin. Guyana is home to some very promising offshore projects and it’s close to our other customers and projects in the region,” COO Morten Kelstrup said. “The D-rig series is particularly well suited to fill special niches around the Americas with its versatile capabilities of both being able to work in a moored and a dynamically-positioned mode. With this contract, Maersk Discoverer is fully booked throughout 2021 allowing us to continue to build and leverage the experience of the crew as well as the special technical characteristics of the rig.”

OilNOW had reported that Kawa-1 is interpreted to be a Santonian-aged stratigraphic trap and is expected to have a reservoir interval potentially similar to what has been penetrated in nearby discoveries, specifically those in Suriname’s Block 58 concession.

Furthermore, the Kawa-1 well is anticipated to be drilled to a total depth of approximately 6,500 meters in a water depth of approximately 370 meters.

Speaking to the Maersk Discoverer, the partners noted that it is a sixth-Generation semi-submersible mobile drilling unit which is capable of operating in 3,000 meters water depth. Its primary features are a 15,000-psi rated well control system, a dual activity derrick, and a moored capability with dynamic positioning. These features make it an excellent fit for the Kawa-1 well’s subsurface conditions, drilling requirements, and the water depth on location, the partners stated.

Along with the Maersk contract, Frontera said it anticipates entering into a separate Deed of Guarantee for certain obligations in connection with the day rates under the Drilling Contract on behalf of CGX Resources, up to a maximum of US$25 million subject to a sliding scale mechanism in connection with payments made under the Drilling Contract.

OilNOW understands that Frontera and CGX anticipate entering into an agreement pursuant to which all amounts drawn under the Deed that are attributed to CGX Resources’ share of the Joint Venture costs, shall be guaranteed by CGX.

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