Premier Oil contracts rig for Indonesia operations

Premier Oil Andaman Ltd. has let a contract to Aquadrill LLC and a subsidiary of Vantage Holdings International for the Capella managed pressure drilling (MPD) equipped drillship for a two-well contract plus two optional wells for operations in Indonesia. The rig will be contracted to Premier Oil Andaman for one well and subcontracted to Repsol Andaman BV for a second well.

The total contract value for the firm portion of the contract is expected to be about $42 million. Work is expected to begin in first-quarter 2022 following completion of its current contract, transitioning the rig to Vantage Holdings, relocating the rig from Malaysia to Indonesia, and preparing the contract. The contract is expected to run into mid-third-quarter 2022.

If the options are exercised and the work scope is similar to the firm wells, the rig is expected to be available late fourth-quarter 2022 or early first-quarter 2023. Total additional contract value is about $37 million.