Sirius Petroleum, a company working to develop the Ororo field offshore Nigeria has signed a well management contract with Add Energy.
The contract is for a multi-well campaign, part of Sirius’ shallow offshore development project in Nigeria, starting in the first half of 2017.
Sirius said that the well management contract provides Sirius with the engineering and operational capability to drill, complete, and produce wells in 2017.
The company also said that Add Energy was “instrumental” in working with Sirius to secure the jack-up drilling rig contract with COSL Drilling Pan-Pacific Limited, on which Offshore Energy reported on Tuesday. More here: https://bit.ly/2fFwyfI
Similarly to the drilling contract with COSL, under the well management deal, Add Energy will provide its services to Sirius and will extend delayed invoice and payment terms to Sirius “in line with the company’s other project partners,” without providing further details.
To get an idea how these contracts work, Sirius earlier this week provided an explanation regarding the drilling rig contract it signed with COSL:
“Under the terms of the Vendor Finance Contract, COSL will extend delayed invoice and payment terms to Sirius which will have the effect, dependent on successful drilling, of deferring a significant portion of the cost of the rig until after the Company commences the production of hydrocarbons, but is otherwise on normal industry terms. The contract envisages a drilling program on the Ororo Field and could be expanded to include other potential offshore assets.”
Sirius did not reply to Offshore Energy Today’s email seeking further clarification.
Also, announcing the Add Energy deal on Friday, Sirius said it would say more in due course regarding the final elements of the financing and operational service agreements, including the Joint Operating Agreement (“JOA”), to support its proposed drilling program for Ororo.
The contract with Add Energy envisages a drilling program on the Ororo Field and can be expanded to include other potential offshore assets.
Bobo Kuti, CEO of Sirius, said: “We are delighted to have secured this important Well Management contract with Add Energy, one of the world’s leading drilling project management companies. Having Add Energy leading the operations in the field reinforces our confidence in achieving first hydrocarbons in H1 2017.”
Dermot O’Keeffe, Add Energy Chief Operating Officer, said: “We are looking forward to working in collaboration with Sirius Petroleum to enable the Company to reach first oil in 2017. Working together with COSL and our other service providers will demonstrate that, in the oil & gas new world order, pooling resources to develop solution-based results is the way forward.”
Offshore Energy Today Staff