Providence Resources signs contract for Stena IceMAX drill-ship

27 November 2016 (Last Updated November 27th, 2016 18:30)

Ireland-based oil and gas company Providence Resources has signed a contract with Stena Drillmax Ice Limited for use of its Stena IceMAX drill-ship.

Ireland-based oil and gas company Providence Resources has signed a contract with Stena Drillmax Ice Limited for use of its Stena IceMAX drill-ship. 

The drill-ship will be used to drill FEL drilling project lying 2,250m deep in water in the southern Porcupine Basin, 220km off the south west coast of Ireland.

Providence Resources chief executive Tony O’Reilly said: “We are delighted to have signed this rig contract with Stena. Our previous exploration collaboration project with Schlumberger highlighted the significant hydrocarbon potential of FEL 2/14, which we will now be evaluating using the high-specification Stena IceMAX drill-ship.

"We will now be evaluating the significant hydrocarbon potential of FEL 2/14 using the high-specification Stena IceMAX drill-ship."

“The signing of this rig contract is a major milestone in the project plan to enable the drilling of this high-impact exploration well during summer 2017.”

The Stena IceMAX is a modern harsh environment dual derrick drill-ship that is designed to operate in water depths of up to 3km.

This contract provides equipment for one firm well with an additional option, which is electable at the discretion of the joint venture partners, for the drilling of a second follow-on well.

It is estimated that the operational rig rate is $185,000 a day.

The licence is operated by Providence Resources, which holds 80% interest in the project. The remaining ownership lies with Sosina Exploration Limited.

With this deal, other service contracts are also being prepared for the drilling operations. Subject to standard regulatory approvals and consents, the 53/6-A exploration well is expected to be spudded in June 2017.