Update: Alpha Petroleum takes Stena Spey rig on a long-term deal

(Updates: A source close to the matter confirms the deal, but says the term, dayrate lower. Alpha declines to comment)


By Bartolomej Tomić

Offshore drilling specialist Stena Drilling has reportedly secured a long-term contract for its Stena Spey semi-submersible drilling rig.

Stena Spey / Image source: Wikimedia

Offshore rig brokers Bassoe Offshore on Tuesday shared an update showing that Alpha Petroleum, a UK North Sea-focused oil company, had signed a contract with Stena Drilling for the 1983 semi-sub.

Per details shared by Bassoe, Alpha Petroleum has hired the Stena Spey on a 580-day contract, of an estimated dayrate of $135.000. The contract is expected to start on March 20, 2019, and end on October 20, 2020.

The Stena Spey rig is currently warm-stacked in Norway. Offshore Energy Today last time wrote about to rig back in August when it was announced that CCB had won a Special Periodic Survey contract for the Stena Spey.

The Stena Spey is one of three semi-subs owned by Stena Drilling, which apart from the semis also owns four drillships. Stena’s semi-sub fleet is soon to be reduced by one unit as the company in October said it would retire and sell its Stena Clyde rig after the rig spent three years stacked in Australia.

Stena’s remaining active rig, the Stena Don, is currently undergoing upgrades in the Netherlands and will go on a contract with Total in the UK in March next year. Stena’s four drillships are all currently employed in Ghana, Guyana, Cyprus, and the Gambia.

Stena Drilling fleet status / Chart generated by Bassoe Analytics tool

Worth noting, Bassoe’s report shows the rig will be deployed at Alpha’s Cheviot field in the UK North Sea. Alpha will use the rig for the development drilling program at its Cheviot field in the UK North Sea. Bassoe shows the deal is for 18 wells.

Alpha Petroleum in October said the sanction for the Cheviot development would occur in Q4 2018 with first oil targeted for the second quarter of 2021.

The oil company has said that Baker Hughes GE (“BHGE”) will partner with the firm on the advancement of the subsea infrastructure and integrated drilling services for Cheviot.

The Cheviot development programme will consist of a minimum of 18 wells: 13 production wells, two water injection wells, and two gas injection wells.

Offshore Energy Today has reached to both Stena Drilling and Alpha Petroleum, seeking confirmation that the rig deal has indeed been signed.

A Stena Drilling spokesperson declined to comment citing confidentiality reasons.

A source familiar with the matter who did not want to be identified on Wednesday confirmed for Offshore Energy Today that the deal had indeed been struck. Our source, however, claims the contract is actually for 480 days and not for 580 days as stated by Bassoe. The source further says the dayrate is lower than Bassoe’s estimated $135.000. The source, however, did not provide an exact number.

Bassoe has since also revised the terms of the agreement down to 480 days, and lowered the estimated dayrate to between $115.000 – $120.000

Alpha Petroleum declined to comment.

The article was previously updated to state that Bassoe’s report shows the contract is for deployment of the Stena Spey rig at Alpha’s Cheviot field.

Offshore Energy Today Staff

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