WATCH: Transocean rig comes to Southeastern Europe for 540-day drilling gig on €4 billion gas project

Switzerland-based offshore drilling contractor Transocean is expected to kick off drilling activities in the Black Sea next year, after one of its semi-submersible rigs, which was hired for a gas project off the coast of Romania, arrived in Constanta.

The rig owner disclosed a minimum 540-day contract for the Transocean Barents rig in December 2023 for a campaign in the Romanian Black Sea. The deal puts the rig in charge of drilling activities on OMV Petrom‘s Neptun Deep project. The rig is anticipated to begin its 540-day contract in April 2025.

According to OMV Petrom, the Transocean Barents semi-submersible has now reached Constanta after a voyage of 18 days. The rig departed from Cartagena, Spain at the end of October 2024 and passed under the Bosporus Strait bridges, which required the lay-down of the derrick.

Transocean Barents rig passes through Istanbul Strait

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Southeastern Europe’s giant integrated energy producer and operator of the Neptun Deep project describes this undertaking as “a world first for Transocean and this type of rig.”

Before it departed from Cartagena, the Transocean Barents semi-sub underwent major structural modifications and upgrades to enable the tilting operation of the derrick. The rig’s preparation for the voyage to the Black Sea took around 750,000 man-hours and eight months.

Jonathan Borg, Former CEO of the Transport Authority in Malta, recently revealed that Bluhull Marine Agency executed a rig pit stop for the Transocean Barents semi-submersible en route to Romania in collaboration with MedservRegis and the Ports and Yachting Directorate of Transport Malta. MedservRegis Malta also confirmed the operations related to the rig’s recent scheduled stop in Malta.

Christina Verchere, CEO of OMV Petrom, commented: “The arrival of the rig marks an important step in our journey to develop the first deep offshore gas project in Romania, together with our partner Romgaz. Neptun Deep is a strategic project for Romania and the EU. It will contribute to the country’s energy independence and economic growth. Our focus is on the safe and efficient completion of the project as we move towards first gas.”

Since the rig has arrived in Romania, the mobile offshore drilling unit (MODU) will undergo preparation works, such as rigging up the derrick and installing drilling equipment for its upcoming drilling assignment, entailing drilling production wells for the Neptun Deep project.

Cristian Hubati, Member of the OMV Petrom Executive Board responsible for the Exploration and Production activities, underlined: “The rig underwent a complex preparation process. Essentially, the derrick which weighs around 220 tons was lowered on to the deck to allow passage under the bridges in the Bosporus Strait. The crew will now perform the reverse operation and prepare the equipment for drilling, so that we can start operations safely in 2025.”

After plans to develop the multibillion-euro Neptune Deep deepwater gas project sparked environmental activists’ ire, Greenpeace held a rally at OMV Petrom’s headquarters in Bucharest against the project to urge the energy industry to move away from drilling for more gas and embrace the transition to renewables.

An analysis put a new spin on the opposition the deepwater gas project received from climate activists, arguing that the giant undertaking was enveloped in a veil of danger as its planned drilling activities and steps to bring the field online would need to take place smack dab in the middle of a war zone, surrounded by water depths rigged with sea mines.

The Neptun Deep project, developed by OMV Petrom and Romgaz with each company having a 50% participating interest in the project, is said to require investments of up to €4 billion (around $4.22 billion) for the development phase. The total production is estimated at around 100 billion cubic meters of natural gas, with the first gas expected to be achieved in 2027.

Following the investment decision in June 2023, execution agreements were signed with several companies aside from Transocean. While integrated drilling services are to be provided by Halliburton, Saipem got a €1.6 billion (close to $1.69 billion) contract for the offshore facilities, along with other smaller deals. 

The infrastructure to develop the Domino and Pelican South commercial fields encompasses ten wells, three subsea production systems and associated flow lines, one offshore platform, a main gas pipeline to Tuzla, and a gas measurement station. The platform, which generates its energy, is perceived to operate at the highest standards of safety and environmental protection.

In addition, Corinth Pipeworks, the steel pipe segment of Cenergy Holdings, was hired to manufacture and supply the pipeline for OMV Petrom’s Black Sea project. Located at about 160 km from the shore, in waters between 100 and 1,000 meters, the Neptun Deep block in the Black Sea covers an area of ​​7,500 square km.

The operator expects the project’s carbon footprint to be better than the industry benchmark, as at plateau production, a carbon footprint of around 2.2 kg CO2/boe is expected, which is below the industry average of 16.7 kg CO2/boe.

Based on recent market and media speculation, Transocean is allegedly mulling over a potential business combination with Seadrill, enabling it to increase its rig fleet to 49 units.