Serica seals the deal for Awilco rig

Oil and gas company Serica Energy and drilling contractor Awilco have signed a contract for the provision of WilPhoenix rig for one-well workover on the Rhum field located off the UK.

The contract signing was preceded by a letter of intent between the two companies, which was announced in February 2020.

The WilPhoenix is a 3rd-generation, enhanced pacesetter, harsh-environment, mid-water, semi-submersible drilling rig.

The contract has an estimated duration of 70 days, including preparatory works, Awilco said in a statement on Tuesday.

It will begin around 15 September 2020 and WilPhoenix is expected to be available for future work from early December 2020.

The WilPhoenix rig is currently on standby rate under its contract with Petrofac.

Namely, Petrofac has recently postponed the beginning of the plug & abandonment program on Rubie and Renee fields.

As a result, Awilco Drilling’s rig has been put on standby rate.

Rhum is a gas condensate field producing from two subsea wells, R1 and R2, tied into the Bruce facilities through a 45km pipeline.

A third well, R3, requires intervention work before it can be brought on production.

In a statement on Tuesday, Serica said that its Rhum work programme will involve recovering debris left in the well by the previous operator and removing an obstruction that is believed to be in place across parts of the downhole completion.

The well will then be recompleted and put into production. R3 is already connected to the subsea production infrastructure.

Serica has also noted it has assessed the potential for COVID-19 related matters to impact the availability of equipment and or personnel and has determined that there are currently no related issues that will prevent the execution of this project.

Mitch Flegg, Chief Executive of Serica Energy, commented: “With a strong balance sheet, no debt and limited decommissioning liabilities, Serica is well-placed to weather the wider industry downturn related to COVID-19 and low commodity prices.

“This resilient position is enabling us to also continue with our previously stated work programmes.

“Bringing the R3 well into operation will increase the production capacity of the Rhum field and will also improve the expected ultimate recovery of reserves.

“Having three rather than two wells will also provide more flexibility in the management of the field“.