Beach Energy awards drilling contract for Otway Basin drilling programme

Australian oil and gas exploration and production company, Beach Energy (BPT) has awarded a new drilling services contract to Diamond Offshore General Company.

The company said that the deal was signed with support from its joint venture partner O.G. Energy.

Under the contract, Ocean Onyx Semi-submersible rig will carry out the Otway Basin drilling programme in offshore Victoria.

The deal involves drilling of up to nine wells, of which six are firm and the other three are optional, with drilling works estimated to begin between December 2020 and March 2021.

According to BPT, the Artisan 1 exploration well is expected to be the first well to be drilled as part of the programme.

Later, the drilling programme will include a series of development wells located in the Geographe and Thylacine gas fields.

Otway Basin drilling contract is subject to a number of conditions precedent

Beach managing director and CEO Matt Kay said “We are pleased to constructively engage with Diamond and sign a new drilling agreement, in what has been a difficult time for the industry.

“It means Beach can move forward with its plans to develop additional natural gas supplies for the east coast gas market.”

“We look forward to working closely with Diamond over the coming weeks to prepare for the start-up of the offshore drilling campaign.”

Subject to a number of conditions precedent, the agreement is expected to be concluded within the next few weeks.

Recently, the two companies have also executed a settlement agreement to dismiss all the current legal proceedings related to the termination of the previous drilling agreement.

Read the latest issue of the OGV Energy magazine HERE.