Danish offshore drilling contractor Maersk Drilling has received a notification from Tullow Oil of early termination for convenience of the drilling contract for the drillship Maersk Venturer.
Maersk Drilling said in a statement on Tuesday that the drillship Maersk Venturer has been working for Tullow offshore Ghana since February 2018.
The contract, signed in late 2017, was for development drilling on the Jubilee and TEN fields offshore Ghana. It was expected to end in February 2022. However, following Tullow’s early termination decision, the rig is now expected to end the contract in June 2020.
As a consequence of the termination, Maersk Drilling’s revenue contract backlog is reduced by $175 million covering the period from the end of the contract to February 2022.
Subject to commercial prospects, Maersk Drilling said it would take measures to reduce Maersk Venturer’s operating costs following the end of the contract.
Maersk Drilling maintains the profitability guidance for 2020 of EBITDA before special items of $325-375 million.
UAE’s oil giant ADNOC has decided to step up its efforts and produce more oil, pledging to increase supply to over 4 million barrels per day in April 2020 following the collapse of the OPEC+ agreement and the oil price war between Saudi Arabia and Russia.
In a statement on Wednesday ADNOC Group CEO, Dr. Sultan Ahmed Al Jaber, said: “In line with our production capacity growth strategy announced by the Supreme Petroleum Council, we are in a position to supply the market with over 4 MMBPD in April. In addition, we will accelerate our planned 5 MMBPD capacity target.”
ADNOC also said it would provide better forward visibility to its customers and that it would shortly announce forward prices for the months of March and April 2020.
“This decision has been made to ensure that our customers have visibility of the price so they can plan accordingly,” ADNOC CEO said.
“As announced in November 2019, ADNOC remains firmly committed to moving from its current retroactive pricing mechanism to a new forward pricing mechanism for its flagship Murban crude oil. This will be traded on a new independent exchange, ICE Futures Abu Dhabi (IFAD), which is expected to launch after the necessary regulatory approvals are obtained.”
ADNOC’s decision to boost oil output comes after OPEC and Russia last week failed to agree on further production cuts in order to cope with falling global oil demand as a result of coronavirus outbreak.
Babcock’s Offshore business has secured a new five-year shared contract with three oil and gas operators for helicopter transport in the northern North Sea.
Babcock said on Friday that the contract would initially see the company operate over 100 helicopter flights each month from Sumburgh in Shetland, on behalf of CNR International, EnQuest, and TAQA.
Flights are expected to begin on July 1, 2020.
Babcock Offshore Director, Simon Meakins, said: “We are delighted to welcome this new customer group to Babcock Offshore and look forward to working with them. We are committed to delivering the safe and efficient aviation support they require.”