Friday 14 August 2020

Changes to Fleet Status Report

Commercial activity in Q2 2020:

Maersk Intrepid Awarded four-well extension from Equinor in Norway with an estimated duration of 339 days, plus an additional one-well option, plus the option of adding up to 120 additional days of well intervention. The contract is expected to commence in September 2020, and has a firm value of approximately USD 100m, including rig modifications and upgrades, but excluding the integrated services provided and potential performance bonuses.

Mærsk Developer Maersk Drilling received notification from BG International Ltd., a subsidiary of Shell, of early termination of the drilling contract for the rig with immediate effect. The original end of contract was expected to be in August 2020. Maersk Drilling will receive compensation in the form of early termination fee.

Maersk Reacher Maersk Drilling received notification from Aker BP of early termination for convenience of the drilling contract for the rig, which was hired for accommodation services on the Valhall field, with effect from end-April 2020. The original end of contract was expected to be in October 2020. Maersk Drilling will receive compensation in the form of early termination fee.

Mærsk Deliverer Maersk Drilling has agreed with the customer, Inpex Australia, to suspend the contract with effect from 30 April 2020. Re-commencement of the contract is expected to be in October 2020. Maersk Drilling will receive a suspension rate during this period. The expected end-date of the firm contract period is now in August 2023.

Maersk Integrator Maersk Drilling has agreed with MOL Norge to transfer the contract for the Maersk Interceptor in Norway to the Maersk Integrator. The commencement will follow the completion of the Maersk Integrator’s work scope for Aker BP, expectedly in December 2020.

Mærsk Innovator Maersk Drilling received notification from CNOOC Petroleum Europe (“CNOOC”) that the final well under the rig’s work scope with CNOOC would not be drilled. The contract, which was originally scheduled to conclude in June 2020, therefore ended early, and the rig has been mobilised to Denmark where it will be warm-stacked and marketed for opportunities. Maersk Drilling will receive compensation in the form of early termination fee.

Mærsk Inspirer The restrictions imposed by the COVID-19 pandemic have affected the Egersund yard where the Mærsk Inspirer project is being conducted. The onshore modifications to the Mærsk Inspirer are currently scheduled to be completed in the fourth quarter of 2020, whereafter the rig will move offshore for hook-up and commissioning. It should be noted that pandemic-related restrictions may further affect the project, which means there is increased uncertainty around the project timeline.

Maersk Guardian Maersk Drilling received notification from Total E&P Danmark A/S of early termination for convenience of the accommodation contract for the rig with effect from 20 August 2020. The original end of the contract was expected to be in November 2021. Maersk Drilling will receive compensation in the form of early termination fee.

Maersk Resilient The commencement dates for the rig’s contracts with Petrogas E&P and Dana Petroleum, which were originally scheduled for March 2020 and May 2020, respectively, are to be agreed upon with the respective customers.

Maersk Venturer Awarded 60-day extension for redoing the completion of one well under the rig’s original drilling contract with Tullow Ghana Ltd. The extension commenced in July 2020.

Mærsk Developer Awarded one-well exploration contract with PETRONAS Suriname Exploration & Production B.V. offshore Suriname with an estimated duration of 75 days, plus an additional one-well option. The contract is expected to commence in Q3 2020 and has a firm value of approximately USD 20.4m, including integrated drilling services, mobilisation and demobilisation fees.

Maersk Voyager Maersk Drilling has agreed with the customer, Total, to suspend the contract with effect from 29 April 2020. Re-commencement of the contract is expected to be in late-August 2020. Maersk Drilling will receive a suspension rate during this period. The expected end-date of the firm contract period is now in August 2023.

The total firm value of contracts and extensions awarded to Maersk Drilling in Q2 2020 was approximately USD 161m. At 30 June 2020, the contract backlog amounted to USD 1.6bn.

Subsequent events(2)

Maersk Integrator Awarded one-well contract with Aker BP in Norway in direct continuation of the rig’s current work scope with an estimated duration of 73 days. The contract is expected to commence in February 2021 and has a firm value of approximately USD 18.5m, excluding integrated services provided and a potential performance bonus.

Maersk Resilient Maersk Drilling has agreed with Serica Energy UK to defer the commencement of the drilling programme under the rig’s original contract to a window between March and July 2021.