Beach Energy Ltd. has executed a new offshore drilling agreement with Diamond Offshore General Co. for the use of the semi-submersible Ocean Onyx for a drilling program in the offshore Otway basin in western Victoria.
The agreement provides for the drilling of up to nine wells (six firm and three options) beginning with the Artisan-1 wildcat and followed by a number of development wells in Geographe and Thylacine gas fields.
Artisan-1 is expected to spud between December 2020 and March 2021. The contract includes provisions for COVID-19 related costs and delays.
Beach said that concurrent with this agreement, the two parties also signed a settlement agreement dismissing all current legal proceedings regarding the termination of the previous drilling agreement in March. The termination was sparked by the late arrival of the Ocean Onyx past the original contract start date (OGJ Online, Apr. 28, 2020).
Since that time the semi-submersible has been stacked in Port Phillip Bay near Melbourne, a 1-2-day sail from the Otway region.
Beach said it can move forward with its plans to develop additional gas supplies in the Otway and will work with Diamond during the next months to prepare for campaign startup.