March 29, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico was unchanged last week.  Total fleet utilization was 62.2 percent with 74 of 119 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs was a relative healthy 88.1 percent with 74 of the 84 units under contract or committed for work. 

Jackup utilization remained at 50% with 40 of 80 jackups under contract.  Marketed utilization remained at 80% with 40 of 50 rigs contracted.  Within the jackup fleet, 15 of the 40 contracted units (37.5%) have contracts that do not expire for at least 90 days.  Utilization of the jackup fleet may rise in the coming week as two rigs are reportedly close to signing new contracts, one of which may be 90 days or longer.

Total and marketed utilization for the floating rig fleet remained at 100% with 26 semis and 7 drillships under contract or committed for work.

Utilization of the platform rig fleet stands at 41.2% with 21 of 51 units under contract.  Marketed utilization is slightly better at 56.8% with 21 of 37 units under contract.

Within the inland barge fleet, total utilization is 44.8% as 26 of 58 units are under contract.  Marketed utilization is 70.3% with 26 of the 37 marketed units under contract.

Headline News

ATP Oil & Gas Corporation announced first oil production from its deepwater Atwater Valley 63 #4 well at the Telemark Hub in approximately 4000 feet of water. ATP initiated production on Sunday after completing a sequence of inspections, certifications, permits and approvals of facilities, and field development plan systems. ATP owns a 100% working interest and is the operator of the Telemark Hub.

Operator News

Stone Energy Corporation announced the results of its participation in the offshore Lease Sale 213 held March 17. Stone submitted the apparent high bid on eleven offshore blocks. Stone's share of the lease bonuses for the eleven bids totaled approximately $10.7 million. The lease acquisitions will add approximately 57,815 gross acres and 40,546 net acres to Stone's leasehold inventory. 

Plains Exploration & Production Company (PXP) and its partners are apparent high bidders on 44 blocks on Lease Sale 213.  PXP's apparent high bids include interests in 16 shelf blocks and 28 deepwater blocks covering 16 prospects. The company's working interests on the blocks range from 25%-100% with a net exposure of approximately $34 million.

ATP Oil & Gas Corporation was the apparent high bidder on two bids in which it submitted offers during Lease Sale 213.  High bids were submitted on Ship Shoal 361 in 387 feet of water and Garden Banks 782 in 4,531 feet of water. Previous exploration drilling on Garden Banks 782 found logged hydrocarbons. If ATP is awarded the blocks, the company will have a 100% working interest in each block and serve as operator.

Driller News

Market reports indicate that ENSCO will likely receive contract extensions shortly from Chevron and Apache for two jackups.  It is believed that Chevron will extend its contract with ENSCO 82, which is currently set to end June 30.  Meanwhile, ENSCO 86, which is operating under an initial 90-day contract with Apache, will likely also be extended from mid-April when that term ends.  It was anticipated originally that Apache would probably keep the rig for most if not all of 2010.  Details of both programs will be reported if and when the extensions take place.  Separately, Ensco International, plc announced the company will change its name to Ensco, plc effective March 31, 2010.

Noble Drilling has received and is expecting contract extensions for several of its jackups operating in Mexico for Pemex.  First, the company received an 18-day contract extension for jackup Noble John Sandifer that began March 20 and ends April 8.  However, Noble is expected to receive an additional 60-day extension on the rig that would keep it working into June.  The rig began its current contract in September 2007.  Noble is also expected to receive an additional 48 days of work from Pemex for the Noble Johnnie Hoffman starting in mid-April.  If agreed to, the rig will remain on location to mid-June.  The rig’s current program began in October 2007.  The contract for the Noble Leonard Jones, which currently expires at the end of March, is expected to be extended for another 75 days to June 22.  Finally, Noble is expected to receive an 86-day extension for the Noble Roy Butler.  The new term would begin April 23 and would keep the rig working to July 18.  The rig has been on its current contract since March 2009.  Details of all the pending extensions will be reported as they become available.  Overall, Noble has 12 jackups working for Pemex.

Service/Supply News

Schlumberger announced the acquisition of Geoservices, a privately owned French oilfield service company specializing in mud logging, slickline and production surveillance operations. The total value of the transaction, including net debt, is $1,070 million.

BT Group has entered into a three-year agreement with Cameron International Corporation to continue to operate and manage Cameron's global IT network, including an integrated portfolio of voice, data, video, and high-speed internet services.  The renewal contract is valued at more than $12 million.

March 22, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico fell slightly last week.  One contracted rig left the region and one newbuild, idle jackup was added to the count.  Total fleet utilization was 62.2 percent with 74 of 119 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs decreased to 88.1 percent with 74 of the 84 units under contract or committed for work. 

Jackup utilization inched downward to 50% with 40 of 80 jackups under contract.  Marketed utilization remained at 80% with 40 of 50 rigs contracted.  Perforadora Central newbuild jackup Tuxpan, delivered in February, was added to the rig count, accounting for the change.  Within the jackup fleet, 17 of the 40 contracted units (42.5%) have contracts that do not expire for at least 90 days.

Total and marketed utilization for the floating rig fleet remained at 100% with 26 semis and 7 drillships under contract or committed for work.  One rig, Diamond Offshore semi Ocean America departed the area headed for Australia.

Headline News

The Minerals Management Service (MMS) received $949,265,959 in high bids in its Central GOM Lease Sale 213, held March 17 in New Orleans.  Some 77 companies submitted 642 bids on 468 blocks in the sale.  The total of all bids received was $1,300,075,693.  A breakout of water depths showed that 151 of the 468 blocks were in water depths of 656 feet or less, 32.2 percent of all blocks receiving bids.  On the opposite end of the spectrum, 141 of the 468 blocks (30.1 percent) like in water depths over 6,500 feet.  A deepwater block in Walker Ridge 793 attracted the highest bid of the sale, with a consortium of Anadarko and Mariner Energy bidding $52,560,000 for the block.  Overall, Maersk Oil had a part in 63 high bids, spending $97,315,497 on those bids.  Anadarko exposed the most money in the sale; $127,593,668 on 48 high bids.  Bid evaluations will now begin with the final awards to be made in about 90 days.

Operator News

Shell has announced a significant new oil discovery in its Appomattox prospect in Mississippi Canyon 391 and 392.  Transocean semi Deepwater Nautilus drilled the discovery well in Block 392 to a TD of 25,077 feet, encountering 530 feet of oil pay.  An appraisal sidetrack was then drilled to a TD of 25,950 feet, which encountered 380 feet of oil pay.  Water depth at the site is 7,218 feet of water.  Shell plans additional appraisal drilling later this year.  Shell owns an 80 percent working interest in the prospect, with Nexen Petroleum holding the remaining 20 percent.

ExxonMobil announced that U.S. antitrust regulators have cleared the company’s pending merger with XTO Energy.  ExxonMobil said the waiting period for the merger under the Hart-Scott-Rodino antitrust act expired March 15 without further comment from U.S. authorities.  The Dutch Competition Authority cleared the transaction March 9.  Closing of the deal remains subject to approval by the shareholders of XTO Energy as well as other conditions provided in the merger agreement.  It is expected that the transaction will close in the second quarter.

Anadarko Petroleum Corporation provided an update on its successful deepwater drilling at its Vito appraisal well in Mississippi Canyon 940. The Shell-operated Vito well encountered more than 600 net feet of high-quality oil pay in thick subsalt Miocene sands after being drilled to TD 31,000 feet in approximately 4,050 feet of well.  Anadarko holds a 20-percent working interest; Shell Offshore holds a 55-percent working interest; and Statoil USA E&P holds the remaining 25-percent working interest.

Noble Energy reports it was the apparent high bidder on 16 deepwater leases in recent Central Gulf of Mexico Lease Sale 213.  The operator bid jointly on one of the blocks and alone on the remaining 15 blocks.  Noble’s share of the lease bonuses totaled $37.7 million and covered in excess of 82,500 net acres in water depths up to 7,800 feet of water.  If all of the bids are awarded, Noble’s total acreage position in the deepwater Gulf will increase to over 472,500 net acres.

Colombian state oil company Ecopetrol says it was the apparent high bidder for 19 blocks Central Gulf of Mexico Lease Sale 213.  Bids were submitted by the company’s U.S. subsidiary Ecopetrol America, Inc.  Ecopetrol’s interest in five of the blocks is 100 percent, while it placed bids in 10 blocks with interests ranging between 40 and 60 percent in partnership with Repsol E&P USA, while the remaining four blocks were bid with partner Eni Petroleum U.S., LLC with Ecopetrol holding a 25 percent interest.  Total bids submitted by Ecopetrol totaled around $15 million.  Water depths for all 19 blocks were over 1,300 feet.

Driller News

Seahawk Drilling has received a contract extension for one of its jackups and a new contract for another.  First, Arena Energy has exercised its 60-day option on Seahawk 2602 that will keep the rig busy to June 10.  The operator has also signed a deal that will keep the rig for at least another 35 days to July 15.  Arena is currently working the rig in Main Pass 236 and the option work will also be in the Main Pass area.  Seahawk also reports that Apache will not exercise its 90-day option on jackup Seahawk 2600 and will finish work with the rig in mid-April.  Peregrine O&G has now signed the rig up for a 60-day plus one option well program that will take the rig to North Padre Island 975 for two wells and High Island A-268 for a third.  If exercised, the option well will be in the Galveston area.  The work now keeps the rig working to mid-June.

Hercules Offshore has received a new contract from LLOG Exploration for jackup Hercules 201.  Work in the High Island area will begin in late April with a 55-day dry hole drilling time.  The rig is currently working in Eugene Island 120 for Devon Energy.  Devon had a 30-day option on the rig, but that will not be exercised, freeing up the rig for the LLOG work.  Jackup Hercules 251 left Sabine Pass over the weekend, headed for Chandeleur 43 for the start of its 100-120 day contract with LLOG.  Finally, rumors indicate that Hercules will have a contract in place shortly for currently idle jackup Hercules 205.  The rig, which recently returned to the U.S. Gulf from Mexico, is the marketed unit Hercules owns that is idle.

The contract start with Shell for newbuild semi Noble Danny Adkins has been pushed back from mid-March to the first-half of April.  The rig, which arrived in the U.S. Gulf on January 19, has a four-year contract with Shell starting April 10.

Platform rig Blake 1502 has completed work for Apache in South Pass 75 and is now rigging down.  Upon completion of operations around the end of the month, the rig will demobilize to Houma where it will be hot stacked. 

Jackup ENSCO 75 has sustained damage after it collided with an underwater obstruction, rumored to be the wreckage of jackup ENSCO 64, which was destroyed in Hurricane Ivan in 2004.  The rig was under tow from Viosca Knoll 734 to Main Pass 283 when the incident occurred.  It is understood that the rig will undergo repairs for about two weeks, after which it will return to its contract with W&T Offshore, which runs to at least mid-May.

 
Mariner Energy has exercised its one-well option on jackup Seahawk 2504.  The additional work will consist of a 45-day well in Eugene Island 269.  Operations are scheduled to begin in mid-April when the current well in West Cameron 112 is completed.  The new well now keeps the rig busy to the end of May.

Ensco International, plc announced that subsidiaries of the company have sold two jackup drilling rigs, ENSCO 50 and ENSCO 51. Both are F&G L-780 MOD II-C designs built in the early 1980s. The rumored buyers for the rigs are Great Offshore and Jagson International, respectively. The combined sale price for the two rigs is approximately $95 million.

Service/Supply News

FMC Technologies has appointed John T. Gremp, President and Chief Operating Officer. Mr. Gremp will succeed Peter D. Kinnear as President. In addition, Robert L. Potter will succeed Mr. Gremp as Executive Vice President of Energy Systems.

Baker Hughes and BJ Services announced that at their respective special meetings of stockholders held recently, Baker Hughes' stockholders and BJ Services' stockholders each voted to adjourn their meetings. The parties are making progress and continue to work toward obtaining the required regulatory approval from the Antitrust Division of the U.S. Department of Justice in connection with the merger.  As previously reported, the companies do not expect any resolution to be material to the business or financial performance of the combined company following the merger.

Gulf Island Marine Fabricators, LLC received a letter of intent to participate as a sub-contractor in the construction of two 60-meter offshore support vessels for the Iraqi Navy. The primary contractor for the project is RiverHawk Fast Sea Frames, a Tampa, FL shipbuilder.

ION Geophysical Corporation announced that its cableless land seismic acquisition system, FireFly®, will be used by Apache Corporation to acquire data on two separate projects in Argentina.

March 15, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico rose last week as two idle jackups received contracts and an internal adjustment was made to the floating rig fleet.  Total fleet utilization was 63 percent with 75 of 119 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs increased to 89.3 percent with 75 of the 84 units under contract or committed for work. 

Jackup utilization increased to 50.6% with 40 of 79 jackups under contract.  Marketed utilization rose to 81.6% with 40 of 49 rigs contracted.  Previously idle jackups Hercules 251 and Spartan 303 received contracts, accounting for the uptick.  In addition, with the 180-day contract award for the Rowan Louisiana, 16 of the 40 contracted units (40%) have contracts that do not expire for at least 90 days.

Total and marketed utilization for the floating rig fleet remained at 100% with 27 semis and 7 drillships under contract or committed for work.  The semi fleet numbers were adjusted internally, which accounted for the rise in the fleet number from last week.  Diamond semi Ocean America is scheduled to depart the Gulf for Australia shortly.

Operator News

Devon Energy will sell all of its assets in the deepwater Gulf of Mexico, Brazil and Azerbaijan to BP for $7 billion. BP also will assume Devon's leases of the Seadrill West Sirius in the U.S. Gulf and Transocean Deepwater Discovery in Brazil for the duration of their respective contract terms, July 2014 and January 2014. The sale of Devon’s interests to BP includes interests in 10 exploration blocks in Brazil, seven of which lie in the long-producing Campos Basin area.  The sale will also include Devon’s 5.63 percent interest in the BP operated Azeri-Chirag-Gunashli field development in the Caspian Sea, pushing BP’s operating interest to 39.77 percent.  In the US Gulf, BP will secure interests in 240 deepwater leases, including four producing fields.

The long-rumored Pemex jackup tenders have finally taken place, with the operator taking bids for five jackups consisting of one 350-IC (292 days), three 300-IC’s ( 465, 256 and 1039 days) and one 250-IC (254 days) units.  All appear to be against the renewal of incumbent rigs, with start-up dates ranging from June to September 2010.  In regards to the much talked about 10-year or less age requirement, the tender did specify that the jackups be built or significantly upgraded since 2000.  Only one jackup currently operating in the region was built within the past ten years, the Mexican-owned Panuco which was built in 2007.  While other rigs in the region have undergone upgrades in recent years, it remains to be seen how the remainder of the fleet will be affected.  In addition, while rumors indicate a tender for up to seven additional jackups may happen later this year, 16 jackups have contracts expiring in 2010, 11 of which end by June 30.  While some may receive the 20 percent contract extensions allowable by Mexican law, and others will get long-term extensions, it is likely that some rigs will be released this year.
 

Driller News

Cobalt International will sublet Diamond Offshore semi Ocean Monarch from Anadarko for a one-well program in Garden Banks 958.  Drilling on the North Platte prospect is scheduled to begin around early May and run for 75 days.  It is understood that Cobalt also has an option for an additional well with the semi, which would likely be a second North Platte well in neighboring Garden Banks 959.  The rig is currently drilling a sublet well for Marathon Oil on the Flying Dutchman prospect in Green Canyon 511 that was spud last December.  Anadarko’s contract on the rig runs to March 2013.  It is believed that additional sublet opportunities may be available for the rig after Cobalt’s program is completed. 

As mentioned in last week’s Offshore Activity Report, Diamond Offshore now has a third sublet well with ExxonMobil using semi Ocean Endeavor.  Details have emerged indicating the new well will be in the Keathley Canyon area where the first well was drilled.  Drilling will begin around mid-May and will last for 75 days to around early August.  Drilling of the second well recently began in the Mica prospect in Mississippi Canyon 211.  The rig’s contract with Devon Energy runs through June 2011, but with the recent purchase of Devon’s deepwater acreage by BP, and its election to assume the contracts Devon has with the Deepwater Discovery and West Sirius, further sublets through the end of the contract term are likely as it is not believed that BP will need the rig.

Diamond Offshore semi Ocean Voyager arrived from Mexico and is running anchors in Ewing Bank 834, preparing for its two-well (120 days) contract with Walter O&G.  The rig mobilized to the U.S. Gulf after completing a contract with Pemex in February.  Meanwhile, semi Ocean America is waiting on weather to load out and depart the Gulf for Australia.  The rig has a two-year contract with Woodside Petroleum on arrival.

Rowan jackup Ralph Coffman completed its initial well for McMoRan E&P in Main Pass 299.  The rig is now on location in the Blackbeard field in South Timbalier 168, where operations are expected to last around 300 days. The rig’s contract with McMoRan runs through 2011.

Market reports indicate that Phoenix Exploration will pick up previously idle jackup Hercules 251 for a drill well and two completions in Chandeleur 42 and 43.  It is understood that ADTI will turnkey the operations on behalf of Phoenix.  While the contract is not yet finalized, it is believed the work would start later this month and last for around 100-120 days.  Details will be published when they become available. 

Jackup Hercules 200 completed it work for ADTI/Leed Petroleum in Ship Shoal 202.  The rig is now on location in West Cameron 269 where it has an ADTI turnkey well for Phoenix Exploration.  Upon completion of that work, the rig will go to Eugene Island 227 for one-well plus one-well option for Hall Houston.  ADTI will also turnkey that well.  The firm portion of the contracts will keep the rig busy to around mid-May.  Jackup Hercules 204 finished its contract with PetroQuest Energy and is now in the Bollinger Shipyard in Fourchon undergoing 14-21 days of maintenance.  Upon completion of that work, the rig has a 50-day contract with LLOG Exploration that will keep it working to mid-May.  Jackup Hercules 257 is now on location in West Delta 97 for a 30-day well with Stone Energy.  Stone also retains a 21-day option.  That will be followed by a one-well deal with Hall Houston.  Without the Stone option, the rig is next available in mid-May.  Finally, inland barge Hercules 17 completed its short well with Energy X
XI and is under tow to Houma where it will be hot stacked.

Spartan Offshore has received a two-well contract from ADTI for work with Contango Operators starting March 20 using hot stacked jackup Spartan 303.  The rig will go first to Vermilion 155 for a 30-day drill well, followed by a two-week completion in Ship Shoal 263.  The new deal will keep the rig busy to early May.  Spartan also reports that Century Offshore has committed to take jackup Spartan 151 for a 30-day well.  Work is currently scheduled to begin around mid-May.  Reports indicate that Maritech is having problems with its P&A program in East Cameron 195 which will keep the rig on location to mid-April.  On completion of the contract, the rig will go to Eugene Island 53 for a 30-day well with Mariner Energy, after which it will begin the Century contract.  Jackup Spartan 202 has about 7-10 days remaining on its contract with W&T Offshore in Main Pass 108 before it moves to South Timbalier 204 for a 14-day well with Pisces Energy.  Finally, Spartan 208 completed its contract with Tarpon Operating over the weekend and is now on location in Eugene Island 208 for the start of two workovers with Northstar Interests.  ADTI will provide management services for the operation.

Seahawk Drilling reports that the jacking system on jackup Seahawk 3000 was damaged during its tow from Mexico.  As a result, the contract start for Hilcorp Energy will be delayed until around April 1.  The rig is now in Galveston undergoing repairs.  Work in South Marsh Island 77 is scheduled to last 100 days, making the rig next available in the first-half of July.  Meanwhile, jackups Seahawk 2001 and Seahawk 2004 are both expected to arrive on location March 17.  The 2001 has a 45-day well in South Timbalier 21 with Energy XXI while the 2004 has a 70-day program with Arena Energy in Eugene Island 99.

Rowan has received new contracts or extensions for two of its jackups.  First, McMoRan E&P will pick up the Rowan Louisiana for a 180-day well in Eugene Island 26 in around 20-ft of water.  Drilling on the 24,000-ft well is scheduled to begin around April 1 when the rig completes its current contract with Devon Energy.  The contract stretches rig availability out to October.  The previously reported contract with McMoRan for newbuild Rowan EXL-I is now a two-well deal.  Upon delivery in early May, the rig, a LeTourneau Super 116-E design, will drill an 85-day well in Brazos A-23 before heading to Eugene Island 223 for a 300-day, ultra-deep well.  All told, the rig will not be available until around June 2011.  Finally, Apache has extended its contract for the Cecil Provine for 60 days from March 1.  The rig will finish up in its current location in Grand Isle 41 and then make a short move to Grand Isle 47.  While the current term takes the rig to early May, it is expected that Apache will keep the rig busy the remainder of the year.

ExxonMobil Drilling Co. (EMDC) has signed a contract with ENSCO and has taken jackup ENSCO 99 to Grand Isle 16 for a 60-day well.  The rig had been working for ExxonMobil Production Co. (EMPC) on a workover program in the Mobile Bay area.  The new well now keeps the rig busy to mid-May.  In addition, it is believed ENSCO will have a follow-up contract for the rig in place shortly.  Further information will be reported once it becomes available.

Transocean has begun its five-year contract with Chevron using newbuild drillship Discoverer Inspiration.  The rig’s first drilling location is in Keathley Canyon 736 in 6,730 feet of water.  Drilling is expected to last around 150 days.  The rig is rated to drill in up to 12,000 feet of water and is the contractor’s seventh drillship currently operating in the Gulf.  The company will add an eighth when the Deepwater Pathfinder arrives from West Africa around June 1.  The rig has a five-year contract with Eni.

Pacific Drilling has entered into a Letter of Intent with Chevron for the ultra-deepwater drillship Pacific Santa Ana, under construction in South Korea, to operate in the Gulf of Mexico.

Service/Supply News

FMC Technologies, Inc. has received the 2010 Spotlight on New Technology Award by the Offshore Technology Conference (OTC).

March 8, 2010

Rig Utilization

Mobile rig utilization in the Gulf of Mexico fell slightly last week as one jackup was released and one semi left the area. 

Total fleet utilization was 60.7 percent with 71 of 117 mobile rigs under contract or committed for work.  Marketed utilization, which excludes those cold stacked and other non-marketed rigs dipped to 86.6 percent with 71 of the 82 units under contract or committed for work. 

Within the jackup fleet, 38 of 79 jackups (48.1%) percent) are under contract, while marketed jackup utilization stands at 77.6 percent, with 38 of 49 rigs contracted.  The drop was due to the Spartan 303 being released from its contract.  On a more positive note within the jackup fleet, 15 of the 38 contracted units (39.4%) are tied up for the next 90 days or longer, an unusually high percentage for the Gulf of Mexico.

The floating rig fleet was reduced by one with the departure of Diamond Offshore semi Ocean Courage for Brazil.  Nevertheless, total and marketed utilization remains at 100 percent with all 25 semis and seven drillships under contract or committed.  The next floater to leave will be Diamond semi Ocean America, which is scheduled to depart the US Gulf for Australia in mid-March.

Headline News

LLOG Exploration Company announced drilling success at its deepwater Mandy prospect in Mississippi Canyon 199 in 2,467-ft. of water. The discovery well was drilled to TD 7,500-ft. and encountered more than 120-ft. of net oil pay. A follow-up well at Mandy also found a high quality oil-filled reservoir. LLOG (operator) holds 50% working interest; Mariner Energy holds 35% and Apache Corporation holds 15%.  

Operator News

Devon Energy Corporation announced the elections of two corporate officers.  Jeff Agosta has been appointed to the position of Executive Vice President and Chief Financial Officer and Jeff Ritenour  has been promoted to the position of Senior Vice President, Corporate Finance. 

Noble Energy, Inc. has closed the previously announced purchase of substantially all of the U.S. Rockies upstream assets of Petro-Canada Resources (USA), Inc. and Suncor Energy (Natural Gas) America, Inc.

Contango Oil & Gas Company has spud two exploration wells in the Gulf of Mexico, including the Dude prospect in Matagorda Island 617 and a farm-in on block Eugene Island 10, Eloise South prospect. The company has a 100% working interest in Dude and a 29.7% working interest in Eloise South. Collectively, the company has budgeted $25 million to drill both wells.

Anadarko Petroleum Corporation announced that its total 2010 capital expenditures including expensed geology and geophysics (G&G are expected to be between $5.3 and $5.6 billion.  The company has allocated 18% of its budget to work in the Gulf of Mexico.
 

Driller News

Blake International has received a 60-day extension from Apache for platform rig Blake 210.  The new term now keeps the rig working through June and Apache has remaining options that likely will be exercised.  The rig is working in South Pass 62.  Platform rig Blake 1005, which has been idle in Mexico since it completed a contract with Pemex last September, will be mobilized to the U.S. Gulf shortly.  It is expected that the rig will be warm stacked at Houma once it returns.

As previously predicted the, Diamond Offshore semi Ocean New Era has received a 120 day contract from Pemex, the maximum allowable for the rig.  The extension was given in order for the rig to complete its current well, which likely will be completed in closer to 100 days.  It is expected that upon completion of the contract the rig will be mobilized to the U.S, Gulf, putting the rig in the area in June.

Hercules Offshore has put previously idle barge Hercules 17 to work for Energy XXI in the Freshwater Bay area.  The short job should keep the rig working to March 15.  The rig was briefly idle after completing a contract with Renaissance Petroleum in late February.

Seahawk Drilling says two of its jackups will begin contracts this week.  The Seahawk 2004 is scheduled to leave the Gulf Copper yard in Galveston on March 10.  The rig has a one-well (70 days) plus two option contract with Arena Offshore in Eugene Island 99.  Meanwhile, the Seahawk 2001 should get under tow to South Timbalier 21 on March 11.  The rig, which will go to work for Energy XXI for a 45-day well, has been undergoing reactivation work in Matagorda Island 721.  Finally, jackup Seahawk 3000 is now scheduled to arrive on Hilcorp Energy’s location in South Marsh Island 77 on March 13.  Upon arrival, the rig will undergo 10 days of maintenance work before the 100-day contract begins.

Diamond Offshore has received contracts from Petrobras for three of its floating rigs.  First, Diamond will take semi Ocean Baroness from the U.S. Gulf to Brazil for a three-year deal valued at $307 million beginning in mid-August.  The rig will complete its current contract with Hess in mid-April, followed by about 60 days of shipyard work before departing in June.  Petrobras will also extend its contract with drillship Ocean Clipper for five years starting mid-February 2011.  The current term ends in mid-December, after which the rig will undergo a 60-day upgrade before starting the new contract.  Total revenue for the deal is around $557 million.  The rig has worked for Petrobras under two, five-year contract terms, originally beginning with the operator in January 2000.  Finally, newbuild semi Ocean Valor has received a three-year contract from Petrobras valued at $493 million.  It is understood the contract can be extended to five years at any time during the first year of the contract at a slightly reduced day rate.  The rig will begin mobilization from Singapore shortly, with work to begin in June.  Diamond further reports that newbuild semi Ocean Courage departed the Gulf on March 1 enroute to Brazil.  The semi has a five-year contract with Petrobras and was originally scheduled to work in the U.S. Gulf, but the rig will work in Brazil for at least the first year of the contract.  Meanwhile, semi Ocean America is now due to leave the U.S. Gulf for Australia as soon as the heavy lift vessel arrives, now expected in mid-March.  The rig has a two-year contract with Woodside Petroleum starting in May.  Lastly, semi Ocean Voyager has arrived in the U.S. Gulf from Mexico and is preparing to begin its 120-day contract with Walter O&G.  The rig’s first location will be in Ewing Bank 834.

Jackup Spartan 303 wrapped up drilling for ADTI/Apex O&G in Galveston 351.  The well was not completed and the rig was released.  It is now stacked in West Cameron 38.

Recent Earnings Announcements…

Rowan Companies reported it generated a net income of $60.8 million on revenues of $399.8 million for the three months ended December 31, 2009.  This compares to net income of $94.3 million on revenues of $613 million for the same period in 2008.  For the year ended December 31, 2009, the company had a net income of $367.5 million on revenues of $1.8 billion, compared to net income of $427.6 million on revenues of $2.2 billion in 2008.  The 2009 results included $5.7 million of gains in asset disposals compared to $67.8 million in 2008.

Rigs on the move…

Diamond Offshore semi Ocean Endeavor completed work in Keathley Canyon 919 and is now on location in the Mica prospect in Mississippi Canyon 217 for the second of three sublet wells for ExxonMobil.  Drilling on the Mica prospect is expected to last to mid-May.  The rig is under contract with Devon Energy through June 2011.  Jackup Seahawk 2600 completed a well in Ship Shoal 68 and is now in High Island 129, continuing its contract with Apache which runs to late April.  Platform rig Blake 14 is now rigging up in High Island A-376 after completing work for Apache in South Marsh Island 269.  Inland barge Basic Marine 10 completed work for Manti Operating and is now enroute to the Belle Isle area to begin a well with Phoenix Exploration.

Service/Supply News

Key Energy Services, Inc. has formed a joint venture with AlMansoori Specialized Engineering of Abu Dhabi, U.A.E..  The new joint venture, AlMansoori-Key Energy Services, LLC, will be headquartered in Abu Dhabi and will provide well intervention services in the Middle East and North Africa.

Helix Energy Solutions is engaging financial advisors to assist the company in evaluating the strategic alternatives available for a complete divestment of its oil and gas business.

Former Minerals Management Service (MMS) director Randall Luthi  has begun work as President of the National Ocean Industries Association (NOIA).