PV Drilling secures new drilling contract with Brunei partner

Representatives of PV Drilling and BSP at the signing ceremony (Photo: VietnamPlus) 

Hanoi (VNA) - PetroVietnam Drilling & Well Service Corporation (PV Drilling) under Vietnam Oil and Gas Group (PetroVietnam) will provide heavy tender assist semi-submersible drilling rig “PV DRILLING V” for Brunei Shell Petroleum Company Sdn Bhd (BSP).

Under a contract signed between the two firms on September 24, PV Drilling will provide the tender assist semi-submersible drilling rig (TAD) for the BSP’s deep-water drilling project in Brunei.

The signed contract of six years’ duration adds up to two extensions of 2 years each starting from April 1, 2021 to serve the BSP's drilling project in Brunei.

The PV DRILLING V oil rig of PV Drilling is the 8th TAD in the world which is the latest generation of its kind with state-of-the-art technology and could be considered as the most modern Tender Assist Drilling Rig with the SSDT 3600E HP design.

This is also the first design in the world with high-tech applications that enables PV Drilling V to work on the High Pressure High Temperature wells by a hydraulic blowout preventer (BOP) system that has working pressure up to 15.000 psi (equal to 1020 atm).

The rig was completed in 2011 and started serving the drilling campaign of the Bien Dong Petroleum Operating Company (Bien Dong POC) at Hai Thach – Moc Tinh field in early 2012 with a total of 16 wells in deepwater in extremely complicated and difficultly geological conditions.

However, PV DRILLING V managed to complete the project ahead of schedule, helping Bien Dong POC save time and operation costs.

During the time of the project, PV DRILLING V always operated safely and efficiently with operating efficiency of over 96 percent. It was appreciated for financial efficiency as well as high technology application and management and operation capacity.

At the end of 2016, the deep-water drilling market was almost frozen due to the negative effects of the oil price decline. Since 2017, PV Drilling has strived to find jobs for PV DRILLING V rig in the domestic market.

However, due to some objective factors, the only deep-water drilling project in the domestic market at this time had been stopped indefinitely and there was no plan to redeploy.

PV DRILLING V oil rig in the sea (Photo: VietnamPLus)

Many other options had been considered by PV Drilling’s Board of Directors such as converting the rig into an exploitation rig or selling it to other partners.

However, amid the quiet deep-water drilling market, all the above-mentioned plans were yet realised because of no technical feasibility and low cost.

PV Drilling continued its efforts to seek business opportunities in foreign markets. The firm was pleased to be informed in early 2019 that in Brunei’s BSP had a demand for a TAD.

PV Drilling worked hard during nearly seven months to prepare for its participation in the bidding package to provide both the oil rig and technical solutions for BSP, especially for the use of DES drilling tower with sufficient capacity to meet the need of the Brunei firm.

On August 27, 2019, after a thorough and strict evaluation in all aspects, BSP issued a notification of award to PV Drilling, with the contract starting from April 1, 2021.

PV Drilling confirmed its agreement with BSP's notification of award on August 28, 2019.

On September 24, 2019, PV Drilling and BSP officially signed a contract to supply TAD - PV DRILLING V oil rig for BSP’s deep-water drilling project in Brunei.

The successful signing of the contract shows efforts by PV Drilling in seeking business opportunities in accordance with PetroVietnam’s guidance and the resolution of the Standing Board of the Party Committee of PV Drilling.

Moreover, this contract is also an opportunity for PV Drilling to prove its capacity in providing services to BSP for the first time. It is also the longest drilling contract that PV Drilling has won, laying the foundation for the firm to penetrate deeply into the drilling market in Brunei.

According to a representative from PetroVietnam, the signing of the contract between PV Drilling and BSP is really a good sign when the oil prices are recovering, the budget for exploration and exploitation programmes has increased, and more drilling programmes have been started.

The contract is hoped to contribute significantly to PetroVietnam’s production and business activities in the time to come./.