Japanese rig duo extends stay at Qatar’s largest offshore oil field

Qatari North Oil Company (NOC) has extended drilling contracts for a Japanese drilling rig duo at the giant Al Shaheen offshore oil field in Qatar.

Japan Drilling Company said Friday that the 2008-built Hakuryu-10 and 2015-built Hakuryu-12 jack-up drilling rigs would stay in the Persian Gulf drilling at Qatar’s largest offshore oil field.

The extensions mean that North Oil Company has now exercised first options under the two-year firm + two one-year options contract for the Japanese rig duo.

North Oil Company now has one one-year extension option for the Hakruyu jack-ups.

The extension for Haykuryu-12 takes effect from September 13, 2019, while the extension for the Hakuryu-10 is set to begin on February 12, 2020.

The dayrates were not disclosed. According to Bassoe Analytics, The Hakuryu 10’s current dayrate is $63,000, while the Hakuryu 12 is currently operating at a dayrate of $61,000

The Al Shaheen oil field is operated by NOC, a joint venture between Qatar Petroleum and Total. The offshore oil field is located in Qatari waters 80 kilometers north of Ras Laffan with offshore facilities consisting of 33 platforms, and 300 wells. The oil field, situated off the northeast coast of Qatar, produces 100 million barrels per year. This comprises 45 percent of Qatar’s total oil production. The field started production in 1994.

Total entered the JV to operate the field in 2017, beating Maersk Oil’s bid to continue operating the field for another 25 years. Total then in March 2018 bought Maersk Oil as well.