‘Sevan Louisiana’ to return to operations this week

August 27, 2014

Sevan Drilling, a Norway-based drilling contractor today said that its ‘Sevan Louisiana’ drilling rig should resume operations during the weekend.

The rig, hired by LLOG for work in the U.S. Gulf of Mexico, halted operations earlier this month due to a to a control system leak on the Blowout Preventer (BOP).

While the rig, built by Cosco Qidong Shipyard in China, performed well in June, Sevan Drilling has warned that the leak will lead to a lower utilisation rate in Q3 2014.

“The leak required a shut-down of the well in progress in order to pull the BOP to the surface for repairs. The company has made the required repairs and expects to be back on rate 30 August 2014,” Sevan Drilling has said in its quarterly report.

The Sevan Louisiana is an ultra deep water rig (UDW), built in 2013 at the Cosco shipyard in Nantong, China. The self-propelled rig, equipped with eight thrusters, can accommodate up to 150 crew members.

It is contracted with LLOG in the US Gulf of Mexico for a firm period of 1,095 days and the total revenue potential for the primary contract term is approximately USD 585.5 million inclusive of the mobilization fee.

Back to black

For the second quarter of 2014, Sevan Drilling reported net profit of $9.2 million, compared to a net loss of $35.5 million in the same quarter of 2013.

The company’s operating revenue was $88.6 million in 2Q 2014 compared to $63.9 million in Q2 2013.

Operating revenue consisted of earnings from Sevan Driller, Sevan Brasil and Sevan Louisiana rigs. The company explained that the revenue increase was due to improved operational performance of Sevan Driller and Sevan Brasil, and earnings from Sevan Louisiana which began operations on 28 May.

[mappress]

Offshore Energy Today Staff, August 27, 2014