ConocoPhillips hires Sea1 Offshore vessels to support Transocean rig’s drilling ops

ConocoPhillips Australia (COPA), a subsidiary of the U.S.-headquartered energy giant ConocoPhillips, has picked anchor handling tug supply vessels (AHTSVs) for its upcoming Otway exploration drilling program (OEDP) in 2025, which will be done with a semi-submersible rig owned by Transocean, a Switzerland-based offshore drilling contractor.

Based on ConocoPhillips Australia’s current plans about continuing its exploration program in the offshore Otway Basin, which aims to identify commercially viable natural gas reserves to help meet Australia’s energy needs, the firm intends to undertake exploration activities in offshore permits VIC/P79 and T/49P located in Commonwealth waters. 

To this end, the company has sought approval for an exploration program off the coast of Victoria and Tasmania. The proposed Otway exploration drilling program, currently under assessment with the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), will involve seabed surveys and drilling up to six exploration wells. The proposed program will be undertaken in two offshore titles adjacent to existing natural gas developments in the Otway Basin.

ConocoPhillips (operator, 80% stake in the offshore permits) has booked the AHTS vessels from Sea1 Offshore, former Siem Offshore, for the Otway project, according to its partner, 3D Energi, whose subsidiary, TDO, holds 20% interest in both permits.

This firm describes the AHTS deal as significant and one of the largest contracts after the Transocean Equinox semi-submersible drilling rig was booked on a two-well drilling contract, signed as part of a 2025 exploration drilling program, pending regulatory approval.

With an additional 120 days of optional drilling for Phase 2, the contracted semi-submersible drilling rig, Transocean Equinox, which recently mobilized to Australia for a five-well drilling contract, is expected to arrive in the Otway during the first quarter of 2025.

The drilling locations for the two wells in Phase 1 of the drilling program are yet to be determined and will depend on the outcome of 3D seismic interpretation results in both VIC/P79 and T/49P. Depending on the timing of this interpretation, well locations will be assigned to Phase 1 of the program and the optional second phase.

With a maximum drilling depth of 8,500 meters, the 2015-built Transocean Equinox semi-submersible rig is of GVA 4000 NCS design and can operate in water depths of up to 500 meters.

While elaborating that ConocoPhillips’ contracts allow for two firm wells and an additional 120 optional days, 3D Energi underlined that securing AHTSVs was a strong priority due to their high demand and low availability.

The firm claims that these AHTSVs will perform a key role throughout the OEDP by assisting the Transocean Equinox rig with mooring chains and anchor handling, rig positioning, and providing supplies to the rig. TDO is carried by COPA for up to $65 million in gross drilling costs toward the two firm exploration wells with AHTSVs included in the carry.

Noel Newell, Executive Chairman of 3D Energi, commented: “3D Energi is now poised to participate in one of the most exciting drilling programs in offshore Australia in many years; at a time when the East Coast is desperate for gas. The contracting of AHTSVs is significant in the context of the overall drilling program. AHTSVs are one of the more expensive and critical elements, with high demand and low availability.

“There is still much to achieve in a short amount of time as we rapidly close on 2025 and the drilling of two exciting gas prospects, but we will be reporting our ongoing activities to shareholders as we continue towards our emergence from explorer to potential producer. This drilling program provides a transformational opportunity for shareholders.”

ConocoPhillips has been working on several oil and gas projects outside Australia. Recently, the energy giant brought on stream an oil project, which has been tied to one of the fields in the Greater Ekofisk Area in the North Sea.