Independent Oil awards rig contract to Noble subsidiary

Independent Oil and Gas has awarded the rig contract for the first phase of its core project to a subsidiary of Noble Corporation, it announced on Tuesday.

The AIM-traded firm said the award followed a competitive selection process by its drilling and contracting teams, assisted by well management contractor Petrofac, involving technical and commercial evaluation across several drilling contractors.

It said Noble's Hans Deul jack-up rig was selected to drill the five phase 1 production wells, one each of which were planned at the Blythe and Elgood fields, and three at the Southwark field.

The fields all lie in 20 to 30 metre-deep water in the UK Southern North Sea, with the Hans Deul having a “track record” of safely executing wells in the area.

It said the first phase drilling campaign was scheduled to begin in the first quarter of 2021 and, subject to actual well durations over the five wells, was expected to last into the second quarter of 2022, with first gas scheduled for the third quarter of 2021.

The contract also included extension options to drill up to two further wells on favourable terms, at Independent’s election.

Alongside that, the company said detailed well design was progressing, and was on track to be completed in early 2021 ahead of the first well being spudded.

Independent said it had also contracted most of the key services, tangibles and logistics for the first phase drilling campaign, and was tendering and negotiating multiple associated contracts.

“Noble is a highly experienced drilling contractor, and the Noble Hans Deul is both technically and commercially a strong choice, with a safe and successful track record of delivering similar wells,” said chief executive officer Andrew Hockey.

“This rig contract is another key step in ensuring efficient execution of phase 1 of our Southern North Sea core project, with optionality for further drilling activity on favourable terms.

“It also reflects good ongoing collaboration between our drilling and contracting teams and Petrofac, who are the approved well operator.”

At 1116 GMT, shares in Independent Oil and Gas were up 4.17% at 12.5p.