Transocean Offshore Deepwater Drilling, Inc. (TODDI) has filed a motion for summary judgment in the U.S. Eastern District Court in Louisiana requesting the court to force BP to honor its contractual obligation to defend, indemnify and hold harmless Transocean for damages associated with BP’s failure to contain flow from its Macondo well in 2010. Transocean says BP has refused to honor its contractual obligations despite what Transocean says is the industry-standard reciprocal indemnity provisions contained in the drilling contract. The original contract was signed in 1998 and extended several times up to and including in 2009. Language in the contract says BP will “defend, release, protect, indemnify and hold harmless” Transocean for any and all fines, penalties and damages associated with environmental pollution originating from the well “without limit and without regard to the cause or causes” including negligence, “whether such negligence be sole, joint, active, passive or gross.” The motion also asserts that after months of discovery and over 200 witness dispositions, it was clear that no evidence of gross negligence by Transocean existed. BP filed suit against Transocean on the one-year anniversary of the incident, alleging that Transocean personnel had willful and callous disregard for the welfare of ...

Chevron Corporation announced a new oil discovery at the Moccasin prospect in the Keathley Canyon 736 Well no. 1 in the deepwater Gulf of Mexico. The well encountered more than 380 feet of net pay in the lower tertiary Wilcox Sands. The well is located in 6,759 feet of water and was drilled to TD 31,545 feet.

 

McMoRan Exploration Co. announced logging results from the Lafitte exploratory well located on Eugene Island 223 in 140 feet of water has shown some possible hydrocarbon pay zones. The well has been drilled to 27,038 feet and the company is preparing to deepen the well to TD 29,950 feet.

Noble Corporation has exercised an option with Hyundai Heavy Industries for the construction of an ultra-deepwater drillship, the fourth ordered this year by the company. The rig, which has not yet been named, is based on the Hyundai Gusto P10000 hull design and will be outfitted to drill in up to 10,000 ft of water but will be capable of operating in up to 12,000-ft water depths. Construction cost, including turnkey construction contract, company-furnished equipment, project management and spares, is expected to be $630 million, and delivery is scheduled for the second half of 2014. The rig will be equipped with two complete BOP systems and a DP-3 stationkeeping system and will provide accommodations for 210 personnel. Noble does not currently have a contract in place for the rig.

 

ENSCO, PLC has received a short contract from Cimarex Energy Co. for idle jackup ENSCO 81. The rig is expected to move to location in South Timbalier Block 265 in about a week, with the 17-day P&A keeping the rig working through the end of the month. The rig has been idle in South Timbalier Block 28 since early August after completing a contract for Walter Oil & Gas Corporation....

Anadarko Petroleum Corporation has issued a letter of intent to Technip for the engineering, construction, and transport of a 23,000 ton truss spar hull for its Lucius field development in the GOM’s Keathley Canyon area. This field is located in approximately 7,100 feet of water. The letter of intent allows Technip to begin preliminary work on the project, including purchase of long-lead items for the hull in advance of the planned sanction date of December 2011.

 

BHP Billiton, a significant player in the deepwater Gulf of Mexico, announced that all conditions have been satisfied surrounding the closing of the tender offer to acquire all outstanding shares of the common stock of leading onshore independent Petrohawk Energy Corporation for $38.75 per share.

Anadarko Petroleum Corporation has finalized a unitization agreement with ExxonMobil Corporation and co-owners to develop the Lucius field in the deepwater Gulf of Mexico. The unitization includes portions of Keathley Canyon Blocks 874, 875, 918 and 919. Anadarko will operate the unit with a 35% working interest. Following the unitization agreement, the Lucius interest owners entered into an agreement with the Hadrian South co-venturers whereby natural gas produced from the Hadrian South field will be processed through the Lucius facility in return for a production-handling fee and reimbursement for any required facility upgrades. Anadarko reports that it has already placed orders for long-lead items, including the truss spar floating production facility, which will have a capacity of over 80,000 b/d of oil and 450 MMcfd of natural gas. The company expects sanctioning the project later this year, with first production expected in 2012.

Three major operators, Exxon Mobil Corporation, Royal Dutch Shell, plc, and BHP Billiton Petroleum, have announced recent discoveries and/or developments in the deepwater Gulf of Mexico. These projects are the result of resuming deepwater drilling following the moratorium put in place in May 2010 after BP, plc’s Deepwater Horizon incident.

 

Exxon Mobil Corporation announced the KC 919 #3 wildcat well confirmed the presence of a second oil accumulation in Keathley Canyon 919 in 7,000 feet of water. The well encountered more than 475 feet of net oil pay and a minor amount of gas. The company estimates a recoverable resource of over 700 mmboe combined in its Keathley Canyon blocks, reporting that more than 85% of the resource is oil with additional upside potential. Other interest owners include Eni Petroleum US, LLC and Petrobras America, Inc.

 

Royal Dutch Shell, plc announced a multi-billion dollar investment to develop its Cardamom oil and gas field in the deepwater Gulf of Mexico. The Cardamom project is expected to produce 50,000 boe/d at peak production and more than 140 MMboe over its lifetime. As a result of today’s final investment decision, Shell will move ahead with further development drilling and installing undersea ...