ExxonMobil taps Atwood Oceanics for drilling off Malaysia

ExxonMobil Exploration & Production Malaysia Inc. has awarded a 2-year contract to Houston-based Atwood Oceanics Inc. for drilling operations to be performed by Atwood's Vicksburg drilling rig off Malaysia.

Sept. 17, 2002

2 min read

By OGJ editors

HOUSTON, Sept. 17 -- ExxonMobil Corp. subsidiary ExxonMobil Exploration & Production Malaysia Inc. (EMEPMI), has awarded a 2-year contract to Houston-based Atwood Oceanics Inc. for drilling operations to be performed by Atwood's Vicksburg drilling rig off Malaysia.

The rig, which just completed a drilling project for Carigali-Triton Operating Co. Sept. 1, is currently undergoing equipment upgrades and other vessel modifications required prior to starting the EMEPMI project.

Under terms of the contract, EMEPMI is paying a day rate of $52,000 during the upgrade period and will reimburse Atwood about $3.6 million for the modifications, which are expected to take at least 18 days to complete.

Atwood said it would have modifications completed around Sept. 22 and would mobilize to the site at that time.

In other specifications of the contract, EMEPMI retained the right to terminate the contract after 1 year at any time with a 120 days notice period. The operating day rate is $64,500, with EMEPMI having an option for one additional year at a mutually agreed day rate.

ExxonMobil is the largest oil producer in Malaysia, with current operated production of about 280,000 b/d, representing nearly 50% of the nation's total. It also produces 1.4 bcfd of natural gas, which supplies some 70% of Peninsular Malaysia's requirements.