Westwood Global

Energy Group

Asia Pacific
Offshore Report

May 2023
Report Contents
Editorial 03
New Contracts & Extensions 04
New Contracts & Extensions 04
Disclaimer
Contracts Starting in Next 6 Months 04 This report has been prepared by Westwood Global Energy Group and all rights,
Potential Contracts & Tenders 05 whether pertaining to the body of this report or any information contained within it,
Outstanding Rig Requirements 05 are reserved. This report is confidential and must not be made available by you to any
other person.
New Tenders & Prospects 05
Asia Pacific Offshore Rig Fleet 06 This report is based on Westwood Global Energy Group’s experience, knowledge, and
Active Fleet 06 databases as well as publicly available sources. No representation or warranty,
whether express or implied, is made by Westwood Global Energy Group as to the
Rig Availability 06
fairness, accuracy or completeness of any information (whether fact or opinion)
Drilling Activities 07 contained in this report. The information included in this report is subject to change
Contractor News 08 and we do not undertake to advise you of any changes to such information. The report
does not constitute (i) an offer or recommendation to buy or sell any securities; or (ii)
Rig Movements 09
investment, financial, legal, tax or technical advice. Westwood Global Energy Group
Regional Rig Moves 09 does not accept liability in respect of any actions taken or not taken based on any or
Drilling Contractor Profile 09 all of the information contained in this report, to the fullest extent permitted by law.
Business & Finance 10 Do not act upon the information contained in this report without undertaking
independent investigations and assessments.
Trends & Indicators 11
Rig Fleet Utilization & Dayrates 12
APAC Rig Marketed Supply, Demand & Utilization 12 © Westwood Global Energy Group
Mindspace
APAC Rig Average Leading-Edge Dayrates 12 Metro Building
Country Highlights 13 1 Butterwick, Hammersmith
London
Operator News 14 W6 8DL
Offshore Marine News 16 United Kingdom

Asia Pacific Offshore Rig List 17

Acronyms & Abbreviations 18
Contact Us 22

Asia Pacific Offshore Report | May 2023 2

Editorial
Transocean sending two North Sea semis down under, while moving into offshore
wind foundation installation
• Since the last edition of the Asia Pacific Offshore Report, Transocean secured another contract in Australia for a second North Sea semi. The deepwater drilling contractor will be moving in harsh-environment semi-
Transocean Equinox later this year from Norway. This fixture is comment worthy also because Deepwater Nautilus and Ocean Onyx are available, albeit cold stacked in Malaysia. As of now, there are three more
floater requirements that are still up for grabs in Asia Pacific including from Petronas Carigali, in Malaysia, Zenith Energy, in Australia and Eni in Vietnam. The impact of Diamond Offshore moving the Ocean Onyx
out of Australia seems to have created this opportunity to bring in another unit, compounded with the delays caused by the suspension of the Valaris MS-1 by Santos, forcing Shell Australia to find an alternative. In
terms of floater availability, SSV Catarina is currently available in 2Q after its shipyard stay and the smaller Essar Wildcat comes free at the end of the month.

• Malaysian drilling contractor Velesto Energy has predictably secured contracts with Petronas Carigali in Malaysia. The Naga 3, Naga 4, and Naga 6 have secured work of differing durations all starting in 3Q. All
these rigs still fall under the auspices of the two-year umbrella contract signed in March 2022. The rates for these new contracts are believed to be in the low-to-mid-$100,000 range. Whilst the main contract is with
Petronas Carigali, do not be surprised if they will be shared by other operators as well. With this announcement, operators can breathe a sigh of relief that they have not been sold (for now) to Middle Eastern parties
that had shown interest. Sticking to jackups, there are a few unsettled requirements with commencements slated for the second half of 2023 including from Petronas Indonesia, Pertamina Hulu Energi OSES,
VietSovPetro, and Petronas Carigali. Nido Petroleum Philippines still requires a jackup for this year.

• Tendering activity has been muted and both Indonesian operators, Pertamina Hulu OSES & ONWJ and Petronas Indonesia, have extended the deadline of outstanding tenders. Carigali-PTTEP Operating Company
(CPOC) with its two-rig tender (one jackup and one tender-assist rig) is going through clarifications. Similarly, for ONGC India with its deepwater tender that only drew two bids. PTTEP Thailand is expected to
release a jackup tender by the end of May and the operator is concurrently evaluating a multi-year tender designated Rig #1. The award is planned for May, with a tentative commencement of 31 October, for either
a jackup or tender-assist rig.

• Seatrium Limited was officially launched on 27 April and listed on the Singapore Stock Exchange (S51.SI). The new company is a result of the merger of Keppel Offshore and Marine and Sembcorp Marine. The latter
was founded in 1963 and originally known as Jurong Shipyard. Exactly a decade ago, Keppel was the foremost rig builder in the world and delivered 21 units in 2013. Rig building may become a thing of the past for
Singapore, however it still appears to be the favored spot to dry-dock, carry out inspections, upgrades and repairs to rigs. The price and timeline to build a new rig may be prohibitive at the moment (for anyone that
may look), meanwhile the ease of securing financing for the industry is no longer what it used to be. Yards will also be looking for better payment terms that may not suit prospective buyers. And there are still
abandoned rigs in China waiting to be soaked up into the market.

• And finally, Transocean has announced its intention to form a joint-venture company with Eneti to engage in offshore wind foundation installation activities. Eneti has experience in transport and installing more than
500 wind turbine foundation components in Japan, Germany, and Scotland. Transocean also announced last year that it was getting involved in deep sea mineral mining. This could be a sign of things to come as
contractors look for opportunities outside of conventional drilling activities.

Asia Pacific Offshore Report | May 2023 3

New Contracts & Extensions
Velesto secures trio of contracts for its jackups, while Soehanah secures two years of
work with Medco Energi
• Malaysia: Velesto Energy jackup Naga 2 is going to work for Jadestone Energy in Block PM323, offshore Malaysia. The deal is said Contracts Starting in Next 6 Months
to be four infield wells, with a duration of 120 days. Commencement is targeted for August 2023. After this, the rig is said to be going
to work for Vestigo Petroleum, which had issued a market survey in October 2022, for a five-well program offshore Sarawak. No Operator Rig Start
official announcement of an award has been made by any of the parties. The Naga 2 is still under the umbrella contract signed with
Petronas Carigali (PCSB) and it is understood that the work for Jadestone and Vestigo were secured via a direct negotiation. Petronas Carigali Sapura Pelaut Jun-23
GB Resources Valaris 107 Jun-23
• Malaysia: Malaysian state-run Petronas Carigali Sdn. Bhd. (PCSB) has signed contracts with an estimated combined value of $128
million with Velesto Energy for three of its jackups to work in various locations offshore Malaysia. The operator will take jackups Enquest Malaysia Idun Jun-23
Naga 3, Naga 4 and Naga 6, with each rig commencing work in 3Q. The Naga 3 program will consist of eight firm wells lasting into 2Q SapuraOMV Malaysia Gunnlod Jun-23
2024. The rig is currently working under a three-well charter with PTTEP offshore Sarawak. The Naga 4, will undertake a four-well
firm campaign plus two, one-well options available to the operator thereafter. The four wells have an estimated duration of 180 days. Valeura Thailand PV Drilling I Jul-23
It is currently working for Sarawak Shell and is expected to complete that contract around mid-June and will then likely be towed to Eni Indonesia Capella Jul-23
Singapore for some upgrade work and to undergo its five-year SPS. As previously reported, PCSB signed a two-year umbrella
contract for the rig in March 2022, meaning the new deal falls under that arrangement. Finally, the Naga 6 contract will be for six firm PTTEP Sarawak Noble Tom Prosser Jul-23
wells. It follows the current four-well plus one option program, which began in 3Q 2022. Like the Naga 4, this rig was also signed for Thor (Extension) CPOC Jul-23
a two-year umbrella charter with PCSB in March 2022, so the new work will fall under that agreement. The Naga 6 is expected to be
busy for one year from the commencement of this new contract. SK Innovation PV Drilling VI Jul-23
Jadestone Malaysia Naga 2 Aug-23
• Australia: Transocean has been awarded a contract for a second harsh-environment semi to move from the North Sea to Australia.
An unnamed operator, believed to be Shell, has contracted mid-water, Cat-D semi-Transocean Equinox for a five-well, 300-day Woodside Australia Ocean Apex Aug-23
development drilling program, at its Crux field, located in Browse Basin License AC/L10. Contract value is reported to be $137 Petronas Carigali Naga 3 ` 3Q 2023
million, excluding mobilization and demobilization fees. The contract will begin in 1Q 2024. Water depth at the location is around
558ft (170m). In addition, a one-well option is available that could stretch rig availability into 1Q 2025.The rig is currently stacked in Petronas Carigali Naga 4 3Q 2023
Norway and has not worked since September 2022. Petronas Carigali Naga 6 3Q 2023
• China: CNOOC has awarded a contract for MDW semi COSLProspector to undertake operations in the South China Sea, keeping Petronas Carigali Ketapang JU TBN 3Q 2023
the rig off the market until late 2024. It is understood that it may not drill continuously but will undertake drilling operations for Beach Energy New Zealand Valaris 107 Sep-23
CNOOC as and when needed. From late 2024/early 2025, when this deal ends, the rig will be marketed for long-term work in the
North Sea. Pertamina Hulu OSES /ONWJ JU TBN Oct-23
Mubadala Indonesia Capella Oct-23
• Indonesia & Thailand: Vantage Drilling has confirmed a new two-year unconditional Letter of Award (LOA) for its jackup
Soehanah. The new deal is at a 'significantly improved dayrate' and will keep it working through 3Q 2025. Though no operator or VietSovPetro JU TBN Oct-23
location has been confirmed, market sources suggest that this is an extension with Medco Energi, which already has the rig booked Sagasco Philippines Deep Venture Oct- 23
up until September 2023 off Indonesia and the contract will begin in direct continuation of this campaign. It is understood the rig will
be utilized further off Indonesia and also Thailand. Source: Westwood RigLogix

Asia Pacific Offshore Report | May 2023 4

Potential Contracts & Tenders
PTTEP begins search for deepwater unit to work in Malaysian waters
• SK Innovation has released a market survey for a jackup, consisting of a single is required in May 2024 and will be shared by six undisclosed operators. The
APAC Outstanding Rig Requirements exploration well that has an estimated duration of 100 to 120 days. Preferred
duration of the firm work is 325 days and 285 days for the options. Contractors
are required to provide budgetary indications and include availability of units by
commencement is August 2024. The well is in Block 16-2, in the Cuulong Basin, 26 April. An Australian Safety case is required for this work.
offshore Vietnam. Responses are required to be submitted by 21 April.
#Requirements by Status
• Medco Energi Indonesia requires a second jackup for about six months in
• Petronas Carigali Ketapang II Indonesia Limited (PC Ketapang) 2024. Medco would like to increase its gas production as demand by its regional
EOI/Pre-Tender Prospect Tender has issued a tender for the provision of Jackup Drilling Rig Services. customers has risen. The operator has begun discussions with contractors that
Commencement is in 3Q, and the program is made up of two firm plus two option have rigs in country and is trying to avoid going out to tender. The rig would be
wells. As reported previously, the area of operations is offshore East Madura, East required around April 2024 and will operate in the South Natuna Sea. Medco
Java, Indonesia. Water depth in the area of operations is 180-250ft. A useable leg currently has jackup Soehanah firm until 3Q, but several sources have advised
Australia/NZ 5 66 7 length of 432ft below the hull is needed. The rig would be required to maintain an that the rig will most likely stay with the operator until late 2025.
airgap of 102ft. Other technical requirements include a cantilever envelope of
70ft by 15ft either side of the centerline. Accommodation for 140 persons is
needed. Cold stacked rigs will be disqualified and a local content of 35% is • Pertamina Hulu Energi Offshore Southeast Sumatra (PHE OSES)
needed. The deadline for submission is 12 May. has extended the deadline of the tender (Reference: SA03017481B) issued in
early February until 30 May. This is a joint tender with Pertamina Hulu Energi
Southeast Asia 42 24 16 Offshore Northwest Java (PHE ONWJ). Both need a jackup for a combined
• Petronas Carigali (PCSB) has released a tender for a “low cost” jackup,
duration of two years firm plus one year option, commencing between 4Q 2023
following a market check in January. The rig will be used for plug and
and 1Q 2024. It was reported that representatives from Apexindo, Borr Drilling,
abandonment duties, offshore Malaysia commencing between 10 August and 31 China Oilfield Services (COSL), PV Drilling, Vantage, Valaris, and Pertamina
0 20 40 60 80 100 October. The work scope is said to be for 38 firm wells plus 30 optional wells. The Drilling Services attended the pre-bid meeting.
estimated duration of firm operations is 700 days. PCSB requires an independent
#Tenders & Pre-Tenders by Rig Type leg unit with a cantilever reach of 55ft and 12ft either side of the centerline. The • PTTEP has issued a market survey for a HPHT-capable jackup, with
rig should be able to operate in 400ft of water and the minimum leg length below commencement between March and April 2025. The program consists of a single
hull should be 412ft. It should also have accommodation space for 100 persons, well and duration of the drilling campaign is between four and five months. The
Jackup Semisub Drillship Tender
capable drilling depth of 10,000ft, plus 1000bbls of active liquid mud. The tender, well will be drilled in Block SK-417, offshore Sarawak, East Malaysia. The base
which is designated CHO/2023/Wells/001, closes on 12 May. port will be Labuan. Water depths at the location range between 252ft (77m) and
292ft (89m). The expected leg penetration is 91ft (28m). The unit should have a
• PTTEP HKO (PTTEP) has issued a market survey for a DP2 or DP3 useable leg length of 423ft (129m) and a drilling depth capability of 16,404ft
Australia/NZ 5 7 (5,000m) is needed. The 18-3/4in BOP, must be rated for 15,000 psi with a
deepwater floater. The preferred commencement window is between November
2025 and January 2026. PTTEP is considering two options: the first comprises minimum of four rams. Three mud pumps are mandatory, and the rig should also
five firm wells (three exploration and two development) with an estimated be able to accommodate 130 persons. The drawworks must be rated to 2000hp.
duration of eight months. Then the operator would like to suspend the contract The rig should also have both 5.5in and 4 in drillpipe. The market survey closes on
for about six months and have 11 option wells to drill. The second option is 15 May.
Southeast Asia 43 6 5 4 similar, except that it would like to novate the contract for about six months to
another operator, after the firm five wells. Option 2 also contains 11 option wells. • Medco Energi is planning another five-month drilling campaign in the Gulf of
Area of operations are in Block H and K, offshore Sabah, East Malaysia. The rig Thailand between November 2023 and March 2024. The operator is presently
0 20 40 60 80 must be able to operate in a water depth of up to 4,921ft (1,500m). The market using the jackup Hakuryu-11, which began work in early April with an estimated
survey closed on 08 May. firm duration of about 60 days. There are three options also attached to the
Source: Westwood RigLogix contract. Sources advise that Medco has engaged the incumbent contractor
• AGR Australia has issued an Expression of Interest (EOI) for a jackup. The rig directly.

Asia Pacific Offshore Report | May 2023 5

Asia Pacific Offshore Rig Fleet
The Asia Pacific offshore drilling rig fleet is predominantly made up of jackups (56%),
floaters (22%) and tender rigs (22%)
APAC Active Fleet Rigs Currently Available
By Rig Type
Idle rigs marketed as available with no forward commitments (not incl. cold stacked)
17
Vietnam
Thailand 3x Jackups
Jackups Floaters
6x Jackups 1x Drillship Jackup N/A Raisis (Barge)
8x Tenders
Semisub
4 Deepwater Nautilus
Brunei Drillship
43
2x Jackups Tender
Myanmar 2x Semi-tenders Vencedor
1x Semisub JDA 13
1x Semi-tender T-16
2x Jackups
Indonesia SSV Catarina
7x Jackups
2x Semisubs APAC Active Fleet
Malaysia 1x Tender By Rig Status Rigs Undergoing Contract Preparation
10x Jackups 4x Barges 2
8 Jackups Floaters
6x Semisubs
2x Drillships
4x Semi-tenders Arabdrill 150 Dhirubhai Deepwater KG2
8 Working
1x Tender
Warm Stacked Tivar Deep Venture
Shipyard
Australia
3x Semisubs
5 Cold Stacked Hild
Other
1x Jackup
Admarine 687
APAC Active Rig Fleet 54
By Country Admarine 689
Noble Tom Prosser
Source: Westwood RigLogix

Asia Pacific Offshore Report | May 2023 6

Drilling Activities
Valaris 107 continues with Eni Australia, while Naga 4 is bound for Singapore yard
• COSL-managed jackup SinoOcean Harvest is expected to finish its
current contract in 3Q. The 400ft rig is on a one-year deal with
Pertamina Hulu Kalimantan (PHKT) that began in September 2022.
This is the unit's maiden job since delivery in 2016 and it is being
actively marketed for follow-on work.
• Ultra-deepwater drillship Noble Viking moved to the Hikmat-1 well on •
23 April after completing the Layang-Layang well for Petronas
Carigali. This is the first of the last four wells for PTTEP, offshore
Sabah. They are made up of two exploration and two P&A wells. The
four wells are expected to be completed around the end of July, after
which the rig will sail to Singapore for its SPS. Yard time is scheduled
to be between 60 and 75 days. The rig has been contracted by Shell
Sarawak for a six-well drilling campaign, with an estimated duration of
281 days. Current indications are that it will commence in December,
but that is to be confirmed.
• Velesto Energy jackup Naga 4 is expected to complete its seven-well
• Gunnlod has completed its work with PTTEP HKO at the Beludu-1
location. The jackup is now on contract with Petra Energy
Development Sdn. Bhd. (Petra) and is drilling at the Banang B-5
location, offshore Terengganu. The 45-day well will keep the rig busy
until the middle of June, after which it will mobilize to SapuraOMV’s
location in SK 408, offshore Sarawak for an estimated six-month
drilling campaign that will keep it busy throughout 2023, possibly into
early 1Q 2024.
• COSL-managed mid-water semi Shen Lan Tan Suo is expected to be
released by PTTEP International sometime in July. Drilling in the •
Zawtika field, located in the Gulf of Martaban, commenced in October
last year. Based on the tender, the campaign consists of eight
development wells. This is the rig’s second contract outside of China
since its delivery in 2020. It is understood that upon completion of this
work, it will be towed back to China.
• Valaris 107 has been further delayed and is now expected to complete
its current well for Eni Australia towards the end of May. The jackup
has been working in the Blacktip field in WA-33-R since December •
2022. The next commitment is with Golden Beach Energy in Vic/RL1,
in the Gippsland Basin, offshore Victoria. The duration of the appraisal
well is estimated to be 20-30 days. After that, the rig has a contract
with Beach Energy New Zealand. The rig will be operating in the Kupe
field in PML 38146. The duration of the work is expected to be around
90 days. With this latest delay the work in New Zealand is now
expected to commence only in August some time. • Apexindo inland barge Yani is still operating for Pertamina Hulu Energi
Mid-water semi Essar Wildcat will complete the final well for PT
Pertamina Hulu Energi NSO (PHE NSO) during the second half of May.
It is understood that Blue Sky Langsa, was considering using the rig for •
a single well in the same area but were not able to agree on
commercial terms. The unit has been working offshore North
Sumatera since August 2022. The area of operations are located about
71.5 miles (115km) off the coast of Aceh. Water depths in the area
range between 264-492ft (80-150m). The rig is being actively
marketed post the current contract.
drilling campaign with Shell Sarawak towards the end of the month
(dry-case) or by middle of June should testing on the well be required. •
The rig began its contract in April 2022. After demobilization, it is
scheduled to enter a shipyard in Singapore for SPS and some upgrades.
This is anticipated to take between 45 and 60 days. Sources indicate
that the jackup will most likely return to Malaysia for work with
Petronas Carigali (PCSB). The exact details of its deployment are
unknown; however, the rig is still under the two-year umbrella
contract with PCSB that was announced in March 2022.
Velesto Energy jackup Naga 2 has completed the work with ROC Oil
Sarawak at D35DP-A and is now at the J4DP-A location performing
workover duties. Operations are expected to be completed on or
about 19 May. The rig will then be demobilized to Labuan and await its
next assignment which is Jadestone Energy. The program is said to •
consist of four infield wells in PM 323, with an estimated duration of
120 days, commencing in August. After this, the rig is said to be going
to work for Vestigo Petroleum for a period of five wells.
Deepwater tender-assist rig Sapura Esperanza is expected to finish its
contract with Shell Sarawak at the end of July. The rig drilled two wells
at the Timi location in Block SK 138 and is now on the final well in
Block SK308. Current information indicates that the rig will be heading
for an SPS after this job. Market rumours are that the rig has a follow-
on contract with Petronas Carigali.
Mahakam (PHEM), in the Mahakam Delta, Indonesia. The contract
began in May 2020 and is expected to conclude in December.
Jackup PV Drilling I started its contract with Japan Vietnam Petroleum
Company Ltd. (JVPC) about two weeks ago. The work scope in Block
15-2 consists of one firm well and one workover. It has an estimated
duration of 50 days. The operator also has an option well. Current
indications are that the rig will finish in July and then demobilize at
Vung Tau, prior to being towed to the Gulf of Thailand for its five-well
contract with Valeura Energy. As reported previously, the unit is then
bound for Malaysia. The agreement is rumoured to be for an initial
period of two years.
Borr Drilling Idun is still operating in the Bekok oil field for Petronas
Carigali (PCSB). The move to PM 409 for EnQuest has been delayed to
June. The rig has been contracted to drill a single exploration with an
expected duration of 30 days. After that the rig will revert to the main
contract holder, PCSB to drill two wells in the Duyong field for an
estimated duration of 70 days. The rig will then mobilize offshore
Sarawak to drill three wells for ROC Oil at the D21 field. The
estimated duration of the wells is said to be 36, 42 and 31 days,
respectively. This will keep the jackup busy until the latter part of 4Q.
Estimated duration is 70 days. The rig will then mobilize offshore
Sarawak to drill three wells for ROC Oil at the D21 field. Latest
indications are that the unit is expected to come free in 1Q 2024.
Apexindo inland barge Raisis was released by Pertamina Hulu Energi
Mahakam (PHEM) at the end of March. The rig had been working for
PHEM since July 2020. It is presently warm stacked off Balikpapan.
Meanwhile the Indonesian contractor’s other inland barge Yani is still
operating PHEM, in the Mahakam Delta, Indonesia. The contract
began in May 2020 and is expected to conclude in December.
Asia Pacific Offshore Report | May 2023 7
Contractor News
Valaris closes private placement of funds and Noble’s contract backlog increases
• Transocean and Eneti Inc have announced the execution of a non-
binding memorandum of understanding through their respective
subsidiary companies indicating their intention to form a joint venture
company that will engage in offshore wind foundation installation •
activities. The formation of the joint venture is subject to the
successful negotiation and execution of definitive agreements, with
operations of the joint venture to be performed initially by personnel
from both Eneti and Transocean and that the joint venture would be
responsible for converting up to two fit-for-purpose floating vessels
into offshore wind foundation installation vessels. Upgrades to the
vessels would include a 5,200t crane and capability to carry up to six, •
3,500t monopile foundations with 39in (12m) diameter and possess
certain other environmentally responsible and efficiency-enhancing
operating features.
• Transocean reported a net loss attributable to controlling interest of
US$465 million on revenues of US$649 million. That compared to a
net loss attributable to controlling interest of US$350 million on
revenues of US$606 million in 4Q 2022. The 1Q 2023 results included
net unfavorable items of $190 million, which resulted in an adjusted •
net loss of US$275 million. Contract drilling revenues for 1Q 2023
increased sequentially by US$43 million to US$649 million, primarily
due to increased activity for rigs that returned to work after being idle
in 4Q 2022 and increased dayrate for two rigs, partially offset by two
fewer calendar days in the first quarter.
• Valaris expects to exercise the delivery option on the first of two
newbuild ultra-deepwater drillships currently under construction at the
Daewoo Shipbuilding & Marine Engineering in South Korea. The driller
said that the US$119 million price tag associated with the Valaris DS-
13, which has a scheduled delivery of late 2023, is attractive based on •
recent drillship sale activity. It also said that it continues to evaluate the
delivery option for the second unit - Valaris DS-14 - that is priced at
around US$218 million against other uses of its capital. In addition,
Valaris has stated that it expects to have the opportunity to reactivate
at least one more drillship in 2023 and put that unit to work. Cost of
reactivation will likely be between US$65 million to US$75 million.
Valaris has now confirmed the completion of the sale of jackup Valaris
54. The 1982-built Friede & Goldman L-780 MOD II was sold to
Advance Energy Systems (ADES) for US$28.5 million. The 300ft rig
has been secured for a three-year contract with ONGC, offshore India
starting in October. It is now called the Admarine 11 and is undergoing
maintenance and contract preparation at an undisclosed location.
Valaris has reported some changes to the contract status of ultra-
• Advanced Energy Systems (ADES) has renamed three jackups
deepwater semi Valaris DPS-1. The rig is operating for Woodside
Energy offshore Australia and the current contract will end in August.
The next contract will begin in September and will keep the rig busy
until February 2025. Part of this work is understood to be in the
Scarborough field in Permit WA-61-L with duration of about 420 days.
The unit has been working for Woodside since April 2022.
Noble Corporation reports that it earned a net income of US$108
million on contract drilling revenues of US$575 million during 1Q
2023. In 4Q 2022, the company reported net income of US$135 •
million on contract drilling revenues of US$586 million. Noble says that
it added US$1.1 billion of contract backlog during the first three
months of the year, increasing total backlog to US$4.6 billion. Included
in the total was an additional 6.3 years of contract term for the
company's four operating drillships in Guyana. In addition, marketed
utilization of Noble's rig fleet fell to 80% in 1Q, down from 88% in 4Q
2022.
Saipem reported revenues of EUR 180 million, an increase of 40%
compared to the corresponding period of 2022, thanks to a 'favorable
market scenario’, with daily rates increasing and the higher
contribution in the quarter by the 350ft jackup Perro Negro 8, being
demobilized from Russia in the first quarter of 2022. Saipem says that
the improvement has more than offset the lower contribution by
deepwater semi Scarabeo 5, under sale, which was operational only
36 days throughout the quarter, compared to being fully operational in
the corresponding period of 2022. Adjusted EBITDA in the first
quarter of 2023 amounted to EUR 68 million, equal to 37.8% of
revenues, compared to EUR 40 million in the corresponding period of
2022, equal to 31.0%, mainly attributable to better market conditions
with increasing daily rates compared to the corresponding period of
2022. Saipem does not have any units working in Asia Pacific.
purchased from Seadrill in 2022. The AOD I, AOD II and AOD III have
been renamed Admarine 501, Admarine 502 and Admarine 503,
respectively. The rigs were purchased in October 2022, and all are
under contract with Saudi Aramco. The rigs are the Keppel FELS
KFELS MOD V B design and rated to work in up to 400ft of water.
They were delivered in January 2013 (Admarine 501), April 2013
(Admarine 502) and July 2013 (Admarine 503).
Vantage Drilling reported that it has been given a formal notice of
termination from Seadrill regarding the marketing agreements for
drillships Capella and Polaris as well as harsh-environment semi
Aquarius. This comes following the recent announcement from
Seadrill that it will acquire Aquadrill, with these three rigs included in
the agreement. The Aquarius is currently transitioning back to
Seadrill's management, while the two drillships will continue to be
managed by Vantage during their current and already fixed contracts
as well as during any optional contract periods exercised. Vantage
Drilling reports that the Polaris remains a strong candidate for one of
the two outstanding 21-month campaigns currently out to the market
from ONGC India. If the rig is awarded a deal from this tender, the rig
will remain under Vantage Drilling's management for the duration of
such new contract.
Asia Pacific Offshore Report | May 2023 8
Rig Movements
Semi Scarabeo 5 is heading to the Far East from West Africa, while Capella is to
return to Asia Pacific in June
Rigs on the Move Drilling Contractor Profile: Transocean
• Saipem’s deepwater semi Scarabeo 5 is enroute to Singapore and is being towed by AHTS ALP Defender. The rig has not
worked since December 2022. Its last contract was with Eni off Cote D’Ivoire. Reports indicate that the tug and tow will make a Rig Name Rig Type Location Available
brief stop in Singapore before heading to the Far East for potential work in China. The rig is expected to arrive in Singapore
around 22 May. Deepwater Luanda Drillship Malaysia Cold Stacked

• Semi SSV Catarina is now anchored offshore Batu Ampar, Batam, Indonesia, after leaving Balikpapan in early April (it has been Deepwater Nautilus Semisub Malaysia Cold Stacked
stacked since late February). It had arrived in Indonesia from Brazil in July 2019, and has only worked for Eni albeit not
continuously. During this time, the rig has changed ownership. It is scheduled to enter the shipyard for its SPS which will take Dhirubhai Deepwater KG2 Drillship Singapore Bound for Brazil
approximately two to three months. It is being marketed regionally.

• Diamond Offshore deepwater semi Ocean Apex has arrived in Singapore and is now at the quayside at Keppel Shipyard. This will
be for an estimated period of about two months, while undergoing an SPS and maintenance. Upon completion, it will mobilize
back to Australia for work with Woodside, Chevron, Inpex, and Santos which will keep the rig busy until 1Q 2025.
Regional Rig Moves 2023
• The departure of mid-water drillship Deep Venture from Vung Tau, Vietnam, to Batam, Indonesia, has been delayed by about Non Exhaustive
eight weeks. The move was scheduled to take place around the middle of May. The delay is due to the late arrival of spares
required for the reactivation that began in 3Q 2022. The owners, PT Angkasa Biru Services (PT Blue Sky) have secured a Rig Name Entry / Exit Commitment
contract with Australian Independent Sacgasco to drill the Nandino-1 exploration well in Service Contract (SC) 54 offshore Deepwater Titan Mar 2023 USA
Philippines. The commitment is to drill the well within 12 months from 08 August 2022, however we understand that this is now
delayed until 4Q. The unit has been cold stacked in Vietnam (Vung Tau) since July 2017 and is DP2 capable. It is rated to operate Shelf Drilling Scepter Mar 2023 Nigeria
in water depths between 295ft (90m) and 4,265ft (1,300m). Admarine X Mar 2023 India
Capella Mar 2023 Mozambique
• Later this month drillship Dhirubhai Deepwater KG2 will depart Singapore for Brazil for a new long-term contract with Petrobras COSLPower Mar 2023 Saudi Arabia
that will keep it busy until 1Q 2026.
Zhao Shang Hai Long 6 Mar 2023 Sold to ADNOC
• Ultra-deewpwater drillship Capella, will be returning to Southeast Asia upon completion of the Raia-1 well that it is drilling for Valaris 249 Mar 2023 Trinidad
Eni Mozambique. Current indications are that it will be completing the current work scope between 22 and 29 May. It will then Dhirubhai Deepwater KG2 May 2023 Brazil
sail to Singapore for a brief stop, then on to Balikpapan to begin the four-well multi-operator campaign. Capella Jun 2023 Indonesia

Source: Westwood RigLogix

Asia Pacific Offshore Report | May 2023 9

Business & Finance
Hanwha group to take over DSME, while Awilco Drilling decides not to appeal court
decision
• The Fair-Trade Commission (FTC) of South Korea has month, Awilco countered the move by exercising its right to
approved Hanwha Group's proposed acquisition of a terminate the contracts.
controlling stake in Daewoo Shipbuilding & Marine
Engineering (DSME) which is one of the nation’s largest three • A consortium made up of PT Pertamina and Petronas will
Shipyard Status offshore and marine contractors. The FTC gave the go ahead replace Shell Overseas Services in the Masela Block. The
for the deal whereby Hanwha Group subsidiaries would process of finalization with Petronas is underway. The Energy
5x Contract prep acquire a 49.3% stake in DSME for US$1.49 billion from the and Mineral Resources Ministry of Indonesia confirmed the
5x Warm stacked Under Construction largest shareholder, the state-run Korea Development Bank cooperation with Petronas in the block, where the sharing of
(KDB). The FTC had been the final hurdle for the takeover. Shell's participating interest in Masela would be carried out
8x Cold stacked Formal approvals had already been received from anti- after the offer has been approved by both parties. Petronas'
5x Jackups competition bodies in jurisdictions including the European involvement in the block is viewed as good news as it has
2x Semisubs Union, China, Japan, Singapore and the United Kingdom. The investment experience in other countries, where Petronas is
1x Drillship commission’s approval for Hanwha’s acquisition is conditional expected to be a reliable partner in the project estimated to
but these conditions relate primarily to the construction of require around US$20 billion capex. The consortium is in the
1x Tender Assist naval vessels and associated equipment and technologies. process of concluding price negotiation with Shell in relation
to the planned acquisition of the latter’s 35% stake in the
• Korean media have reported that DSME is to be renamed Masela block. Water depths in the block range between
Hanwha Ocean, but the official line is that no decision will be 1,312-2,624ft (400-800m).
Scrapped 2023 made until the acquisition has been completed. In 2022,
Hanwha moved in to purchase DSME after offshore and
Cold Stacked marine contracting giant Hyundai Heavy Industries had failed
No rig retirements in its US$1.8 billion acquisition attempt, although they had
year to-date received the green light from anti-competition agencies in
JU Hercules 208 nations such as the European Commission.
JU KS Java Star
JU West Prospero • The arbitration tribunal has ruled in favour of Keppel FELS in
respect of the construction of semi hull number B379 (Nordic
SS Ocean Monarch Winter). The drilling contractor initially stated that "it is
SS Ocean Onyx disappointed with the tribunal's decision and is currently
SS GSF Development Driller I reviewing the award to establish if grounds exist for appeal”.
DS Discoverer Luanda On 11 May Awilco announced its decision not to appeal. To
remind, Awilco ordered harsh-environment, mid-water semis
Source: Westwood RigLogix Nordic Winter and the Nordic Spring in March 2018 and
March 2019, respectively, but the construction contracts
were terminated by the yard in December 2020. In the same

Asia Pacific Offshore Report | May 2023 10

Trends & Indicators
Valaris sets 2030 emissions-reduction target and ONGC voices concern over
Merchant Shipping Bill
• Valaris has set a target to reduce its Scope 1 emissions intensity per active day by 10% to 20% by 2030 compared to a 2019 baseline. The company has identified a clear roadmap to reach its target based on four areas of focus.
The first is 'Energy Efficient Practices': optimizing the efficiency of power generation on drilling units, including implementing a fleet-wide digitalization of diesel engine monitoring and developing Power Management Plans to
optimize diesel engine fuel consumption. The second area is 'Energy-Saving Upgrades and Procedures': rolling-out energy efficient technologies, such as the ABS enhanced electrical system notation, EHS-E, installed on one of
its drillships with an additional drillship currently being upgraded. The third area of focus is 'Biofuel Blends': using biofuel blends, where made available by customers. Finally, 'Jackup Rig Electrification': electrifying jackup drilling
units using a local electric grid or from other sources, where made available by customers. This is all part of the company’s commitment to sustainability. The company believes this to be a credible target range based on
technologies that exist today and may increase the target as new technologies become available. It remains focused on exploring ways to continuously improve its overall impact on the environment, including the reduction of
greenhouse gas emissions.

• Following the March 2023 report that India's Directorate General of Shipping (DGS) was looking at enacting the Merchant Shipping Bill, which would reclassify jackups as vessels making them subject to age restrictions. Now,
state oil company ONGC has voiced its concern with the bill, which if enacted would make some 68% of the jackups working offshore India ineligible to work. The operator recently wrote a letter stating that the government
should immediately defer the proposal. ONGC says the new law would have 'severe impact on the planned exploration & production activities and oil/gas production'. The operator is also protesting a separate order by the DGS
which calls for offshore drilling rigs certified with MODU code 1979 to be modified to the higher MODU code 1989 within two years. Currently, 25 of 39 rigs operating offshore India are MODU 1979 compliant.

• In September 2022, Woodside published the final Environmental Impact Statement (EIS) for the proposed Browse to NWS project as directed by the Australian Department of Climate Change, Energy, the Environment and
Water (DCCEEW). The proposed development concept entails subsea infrastructure, two floating production storage and offloading (FPSO) vessels delivering 11.4 Mtpa of LNG/LPG and domestic gas, and approximately 900km
pipeline to the existing NWS project infrastructure, which will tie in near the existing North Rankin Complex (NRC) in Commonwealth waters.

• Indonesia's Ministry of Energy & Mineral Resources (ESDM) has pushed back the bid deadline for the country's latest acreage offering. The new deadline for the three offered blocks (one onshore) has been moved from 09 May
to 23 May. The Akia, Beluga and Bengara I contract areas (CAs) are being offered under the cost recovery profit sharing scheme. The Akia CA is an exploration block located off the coast of North Kalimantan. It is close to
proven hydrocarbon reserves at the Tarakan, Bunyu, and Nunukan fields. Beluga is off the West Natuna coast, close to blocks operated by Medco Energi in the Natuna Sea. Both Akia and Beluga are being offered via a direct
auction. The Bengara acreage is located onshore.

• The International Energy Agency (IEA) has called on Australia to deliver national strategies for gas and carbon capture technology to achieve net zero. The Australian Petroleum Production & Exploration Association
(APPEA) said the IEA’s Australia 2023 Energy Policy Review recognised the role gas supply plays in energy security. APPEA chief executive officer Samantha McCulloch said Australia’s gas industry supported the call for gas and
carbon capture national plans, as means to reach net zero. The IEA makes it clear that Australia’s gas production must meet domestic and export needs, with the global LNG market increasingly calling on Australia to help ease
the supply pressures during the global energy crisis.

• The IEA is clear that the temporary price cap should not become permanent because investment may be put at risk, effectively rejecting the notion of ongoing price controls proposed in the Mandatory Code of Conduct. The
market should set the price. Interventions in markets only undermine investment confidence and lead to less new supply, putting upward pressure on prices. The report highlights that robust policies are needed to improve the
availability of natural gas supply in Australia. Ms. McCulloch added that the report also recognises Australia’s suitability for large-scale deployment of carbon capture to enable domestic abatement and regional emissions
reductions, as well supporting export opportunities for low-carbon hydrogen. The global carbon capture race has started, and Australia can’t miss this opportunity when other countries are already making major moves to
progress the technology.

Asia Pacific Offshore Report | May 2023 11

Rig Fleet Utilization & Dayrates
Excluding semis, demand, utilization and dayrates continue to trend upward across the
main rig segments within the Asia Pacific region
APAC Rig Marketed Supply, Demand & Utilization APAC Rig Average Leading-Edge Dayrates
May 2021 – May 2023 May 2021 – May 2023
Committed Committed
(days) Marketed Supply Jackup Semisub Utilization %
Drillship Tender Jackup Util. US$/day Jackup Semisub Drillship Tender
3000
Semi Util. Drillship Util. Tender Util. $450,000
100%
$400,000
2500

$350,000
80%
2000
$300,000

60% $250,000
1500
$200,000
40%
1000 $150,000

$100,000
500 20%
$50,000

0 0% $0

Aug-21

Aug-22

Jan-23
Feb-22

Feb-23
Jan-22

Mar-22
Apr-22

Mar-23
Apr-23
Jul-21

Sep-21

Jul-22

Sep-22
Nov-21
Dec-21

Nov-22
Dec-22
Oct-21

Oct-22
Jun-21

Jun-22
May-21

May-22

May-23
Aug-21

Aug-22
Feb-22

Feb-23
Mar-22
Apr-22

Mar-23
Apr-23
Sep-21

Dec-21

Sep-22

Nov-22
Nov-21

Dec-22
Oct-21

Oct-22
Jul-21

Jan-22

Jul-22

Jan-23
Jun-21

Jun-22
May-21

May-22

May-23

Source: Westwood RigLogix

Asia Pacific Offshore Report | May 2023 12

Country Highlights
The Australian Government proposes tax hikes, while Sri Lanka carries out extensive
energy sector reforms
Australia
• The Australian government has proposed a change to the Petroleum Resources Rent Tax (PRRT) that will affect oil and gas producers such as Woodside,
Santos and Chevron. The amendments should add about US$1.6 billion to the coffers spread over a period of about four years. Treasurer Jim Chalmers said
the changes to the PRRT relating to offshore gas projects would raise more tax, sooner from companies. Woodside’s Northwest Shelf (NWS) project will not
be impacted by the proposed PRRT changes, in recognition of the significant federal royalties and excise payments it makes, however, the operator’s Browse
and Scarborough mega-gas developments would be. Chevron Australia expects it will pay US$2.5 billion in company income tax for the 2022 financial year, in
addition to any PRRT that becomes due. The US giant feels that the PRRT changes were not necessary because the prevailing agreements are working as
intended and Chevron always forecast to pay PRRT once it has recovered its initial investment on the Western Australian projects. Chevron and its partners
have invested upwards of US$50 billion in these two LNG projects.

Sri Lanka
Indonesia • Sri Lanka is carrying out extensive energy sector reforms targeted at rejuvenating indigenous oil and gas exploration. The lack of domestic oil and gas
exploration has worsened Sri Lanka’s economic woes and the government is pressing ahead with reforms for the upstream sector, aimed at kick starting
domestic exploration. In January, it announced joint study regulations in line with the country’s new Petroleum Act, clearing the way for potential near-term
oil and gas exploration agreements with international players. Once the frameworks are in place, it hopes to enter into joint study agreements with potential
international investors, mainly involving its acreage in the Cauvery and Mannar basins. This could be the first step in renewing oil and gas exploration activities
offshore. This is the first time that there is a regulation in place. It outlines to any investor the process should they be interested in exploring the waters off Sri
Lanka. The government is hoping to sign multiple joint study agreements in the coming months with India’s ONGC Videsh (OVL) and another unnamed UK-
Australia based company. A joint-study agreement provides opportunities for companies to carry out initial exploration studies in areas of interest without cost
Sri Lanka recovery. Once successful, the companies can negotiate a petroleum resource agreement, leading to the block’s development stage. Cairn Energy had made a
gas discovery in the past, but it was never developed. India’s Cairn Oil & Gas, a part of the Vedanta group which acquired Cairn Energy’s businesses in the
region, later decided to relinquish the M2 gas discovery. Equinor and TotalEnergies have carried out joint studies in two Sri Lankan deep-water blocks, but
later gave up their interests due to unfavourable market conditions at the peak of the Covid-19 pandemic.

Indonesia
• The Indonesian government notes several challenges in efforts to meet 1 million BPOD oil production and 12 BSCFD gas production by 2030. Gas
monetization in several large-scale gas fields, where SKK Migas and field operators’ efforts to look for potential buyers often end without any agreements.
The Oil and Gas Company Association (Aspermigas) believes the low monetization rate is due to uncompetitive production activities compared to several
other producing countries, such as the US, Qatar, UAE and Saudi Arabia that offer much more competitive LNG prices. The Association expects the
government to look for ways to reduce production and logistics costs in the upstream industry to produce competitive products in the international market,
including infrastructure development such as pipelines and LNG terminals, in addition to offering incentives to increase production and have better economies
of scale.

Asia Pacific Offshore Report | May 2023 13

Operator News
Jadestone Energy increases its capital expenditure and Valeura Energy is planning to
increase production
• Japanese energy company Eneos has completed its withdrawal from
Myanmar’s upstream sector. The exit was triggered by the military
coup of February 2021. Eneos’ subsidiary is Nippon Oil Exploration
Myanmar, of which 40% of shares are owned by JX Nippon Oil & Gas
Exploration. Petronas Carigali was one of the other partners in the
producing Yetagun field. Eneos said that it was exiting the project in
response to “social issues", amid criticism that the project’s revenues •
are flowing to the nation’s military junta. Yetagun straddles blocks M-
12, M-13 and M-14 in the Andaman Sea offshore Myanmar.
• Perth-based Kato Energy’s Environmental Plans that were submitted
to Australia's National Offshore Petroleum Safety and Environmental
Management Authority (NOPSEMA) in 2020 has been approved. The
operator has the Corowa and Amulet development in permits WA-41-
R and WA-8-L. A jackup will be needed as the water depth ranges •
between 279ft and 295ft. The plan is to drill two firm wells and
potentially another two wells starting between 4Q 2023 and 1Q 2024.
The duration is said to be about 150 days plus a potential extension of
about 120 days.
• Jadestone Energy announced that its capital expenditure guidance for
2023 is expected to total from US$110 million to US$140 million. It
will be the largest investment program in its history. 15 percent of this
year’s capital expenditure will be used for the infill drilling campaign on
Block PM 323 offshore, that will start later this year. Singapore based
operating costs in 2023 are expected to total between US$180 million •
and US$210 million. The adjusted full-year operating costs are
associated with the acquisition of interests in Australia’s Cossack,
Wanaea, Lambert and Hermes oilfields, higher tanker costs at its Stag
oilfield and higher logistics costs at Montara. Operating costs are
expected to be about 6% higher, year-on-year. Jadestone also has
assets onshore in Indonesia and Thailand and offshore Vietnam.
• Saka Energi Indonesia said that it will be focusing on developing
existing fields within the Pangkah and Muriah blocks this year to
maintain oil and gas production. Saka will be developing two
exploration wells in the Sidayu field, located in the Pangkah Block
located offshore East Java. The operator will also carry out a 3D
seismic survey and one workover in Pangkah. Saka is using the COSL
managed jackup SinoOcean Peace. The rig began its 42-month
contract in late March.
OMV New Zealand has been granted work program extensions in
PEP-57075 and PEP-60093 (Taranaki Cloudy Bay and Ridgeline, •
respectively). The extension is until April 2025. OMV NZ is 55%
operator, with the remaining 45% belonging to SapuraOMV. Drilling
remains subject to availability of a suitable drilling rig and obtaining the
requisite environmental approvals. In March, OMV put its New
Zealand assets up for sale.
Canadian based Valeura Energy is looking to spend about US$75
million over the next two years on developing the Nong Yao C oil
accumulation in the Gulf of Thailand, with a new drilling campaign
already scheduled. This year's expenditure will go toward installing a
new mobile offshore production unit, currently under construction but
expected to mobilize to the field during the fourth quarter, with •
development drilling starting shortly afterward. The company expects
to drill the first four of nine planned wells by year-end, with first oil
following in first-quarter 2024. It is targeting about 11,000 bbl/d net
from the development later next year.
Valeura Energy has restarted oil production from its Wassana field
offshore Thailand after nearly three years of being shut down. As
reported in June 2020, then operator KrisEnergy discontinued
production, saying that several factors, including the duration of the •
Covid-19 pandemic, speed of global economic recovery and
improvement of energy demand, along with the magnitude and
sustainability of any upturn in oil prices were responsible for the
decision. However, production restarted on 28 April and additional
wells are expected to be brought back online shortly. Wassana is in
Gulf of Thailand Block G10/48. Valeura's sole partner in the block,
Palang Sophon, has decided to pull out of the block and will assign its
11% interest to Valeura in exchange for being released from all
outstanding liabilities relating to joint operations on the license as well
as any future liabilities that could arise due to its past involvement.
Jackup PV Drilling I will mobilize to the Wassana field around July for a
five-well infill drilling program. That work is expected to last until
October.
Woodside Energy is in the process of seeking approvals to drill four
wells as part of the Julimar Development Project. The field is in the
Carnarvon Basin in WA-49-L. The environmental plans are open for
public comment until 26 May. There could potentially be one
additional well, which target has not been finalised. The four prospects
are JUA1C, JUA1E, JUB1A and J-85. They are part of the larger
Wheatstone project operated by Chevron Australia. Water depth is
approximately 535ft (163m). Drilling is currently contemplated in 3Q
2023, with contingent P&A activities in 2024 or 2025. However,
drilling may be performed at any point within three years of EP
acceptance.
Eni looks set to take over the Indonesian Deepwater Development
(IDD) oil and gas project from Chevron. The IDD block is located in
Cekungan Kutai, East Kalimantan province. Minister of Energy and
Mineral Resources (ESDM), Arifin Tasrif, said that an agreement
signing process between the two parties is planned at the end of May
2023. Eni will be the new operator of the national strategic project
worth US$6.98 billion. Production began in 2016. Water depths range
between 4,500ft and 6,500ft.
In its 1Q 2023 operating results published on 27 April, PTTEP
announced that it has commenced the front-end engineering and
design (FEED) phase for the carbon capture and storage (CCS) project
at its Arthit field offshore Thailand. PTTEP expects to make the
project's final investment decision (FID) in 2H 2023.
Asia Pacific Offshore Report | May 2023 14
Operator News (cont.)
Repsol has surrendered the Aceh block after disappointing results and Eni is due to
start its deepwater exploration program offshore Indonesia
• Repsol SA has decided to relinquish the Aceh offshore exploration
block after failing to make a discovery in the block. The Spanish oil and
gas company’s exploration period extension will lapse in June. The •
Rencong-1X well was drilled in July 2022 by the ultra-deepwater
drillship Capella. Repsol later reported that the well failed to find
commercial oil and gas reserves. The well lies in the Andaman III block
offshore North Sumatra Basin in around 3,609ft (1,100m) of water.
• Eni will start its upcoming deepwater exploration program off
Indonesia by drilling the Geng-North-1 well, at the North Ganal block
offshore East Kalimantan. It is expected to take 110 days to drill. The
next well will be the Layaran-1 within the South Andaman Block for •
Mubadala Energy. After this, the rig will be handed over to Harbour
Energy for two wells in the Andaman Sea. Ultra-deepwater drillship
Capella has been contracted for this work, currently expected to start
in June. The four wells have an estimated total duration of 11 months.
• ONGC made two discoveries offshore India at its Amrit and Moonga
blocks. The operator drilled the MBS171HAA-1 in Amrit and the
MBS182HDA-1 at Moonga. Both are Open Acreage Licensing Policy
(OALP) blocks in the Mumbai Offshore License. No details about the
finds were released, with ONGC only saying they are "remarkable •
finds". The Moonga well was drilled with ONGC jackup Sagar Shakti to
a TD of 3,724ft (1,135m). The specific rig for the Amrit well is not
known, but it is believed to be another ONGC-owned unit.
• BP is expanding its interest in the Browse basin, offshore the
Northwest Shelf (NWS), Western Australia. The operator is in the
process of purchasing the interests held by Shell Australia in the
natural gas project. An agreement has been signed between the two
energy giants and is subject to regulatory approvals. Woodside is
operator of the Browse project on behalf of the Browse JV, which is
made up of Woodside Browse (30.60%), Shell Australia (27%), BP •
Developments Australia (17.33%), Japan Australia LNG (14.40 %) and
PetroChina International Investment (10.67%). Shell claims the
Browse asset is “no longer a strategic fit” in the context of its global
portfolio.
Woodside Energy stated that it is reassessing the development
timeline for its Scarborough development offshore Australia as
additional environmental approvals from the Environmental
Management Authority National Offshore Petroleum Safety
(NOPSEMA) are needed. In the company’s annual general meeting, •
Woodside said it remains committed to delivering LNG from the
development in 2026 but has had to adjust the project schedule to
accommodate time for additional consultation.
ExxonMobil has announced 1Q 2023 earnings of US$11.4 billion, or
US$2.79 per share assuming dilution. Results included unfavourable
identified items of approximately US$200 million associated with
additional European taxes on the energy sector. Capital and
exploration expenditures were $6.4 billion, which is on track to meet
the company's full year guidance of US$23 billion to US$25 billion.
The record first quarter earnings demonstrate structural earnings
improvements through growth of advantaged assets and cost and
execution efficiencies.
ExxonMobil increased oil and gas net production by nearly 300,000
oil-equivalent barrels per day in 1Q 2023 versus first-quarter 2022,
excluding divestments, entitlements, and the expropriation of Sakhalin-
1. The company also started up the Beaumont Refinery in Texas and
has reached full capacity of 250,000 barrels of production per day to
help meet global demand. It has announced FID for the Uaru offshore
development and two new discoveries in Guyana. Finally, ExxonMobil
grew its Low Carbon Solutions business with the execution of a new
long-term customer contract for carbon capture, transportation, and
storage.
Petronas Carigali will be undertaking a seismic survey program over
the M1 field offshore Sarawak. The operator plans to use empty
reservoirs to store the CO2 from its Kasawari carbon capture and
storage project. It will acquire a 3D-4C (three dimensional, four
compartment) ocean bottom node (OBN) seismic survey over the M1
field. Seabird Exploration’s survey vessel Eagle Explorer has been
contracted for this work. The work which is scheduled to start in June
is expected to take around two months including mobilisation. The site
is in Block SK 316, offshore Bintulu.
Santos has signed a fourth Memorandum of Understanding (MOU) for
the proposed storage of CO2 emissions from third parties to underpin
the initial development of its Bayu-Undan CCS project offshore Timor
Leste. The four non-binding MOUs have been executed with potential
upstream gas and LNG projects offshore Australia's Northern Territory
and Darwin, as well as an energy and industrial conglomerate in Korea.
Santos also stated that the MOUs indicate demand for CO2 storage at
Bayu-Undan could be in excess of 10 mmtpa. Excluding Darwin,
Santos said the Bayu-Undan CCS project will be a relatively low-cost
carbon solution. Santos reported that the front-end engineering and
design (FEED) work scope is still ongoing and nearing completion, with
FID now targeted for 2025.
• The head of East Timor's national oil company (Timor Gap) said he
expects a decision by November on whether to pipe natural gas from
its offshore Greater Sunrise project to the Southeast Asia island or to
Australia for liquefaction and export. Production at the new field could
start around 2030, according to Antonio De Sousa, CEO of Timor Gap,
at the recently concluded Offshore Technology Conference (OTC) in
Houston. The multi-billion-dollar Greater Sunrise development on the
maritime boundary between East Timor and Australia has been stalled
for decades amid disputes over where the gas should be processed
into LNG. A study to evaluate processing and selling the gas in East
Timor, called Timor-Leste, versus Australia and the costs of each
location requires the approval of a designated authority representing
the interests of both countries.
Asia Pacific Offshore Report | May 2023 15
Offshore Marine News
Platform supply vessel MS Voyager to be converted to an “at-sea-spaceport” for
human space flight
• Platform Supply Vessel (PSV) MS Voyager, formerly known as the C-Challenger, which was owned by Edison Chouest Offshore is now being converted into an “at-sea-spaceport” for human space flight by US-based Space
Perspective. The MS Voyager will be used to transport the Spaceship Neptune commercial spaceship to an offshore location where a giant SpaceBalloon will be filled with hydrogen to lift Spaceship Neptune and its passengers
on a six-hour journey to 20 miles above the Earth. The DP2 PSV was built in 1998 and is 83m (272ft).

• PSV Britoil Journey has been delivered by the Guangzhou South China Shipyard in April. The vessel, which was acquired by Britoil Offshore will be brought to Singapore for some final preparation work. It was previously known
as the Vallianz Voyager. The original newbuild contract that had been placed by Vallianz Holdings was later terminated and Britoil Offshore subsequently acquired the vessel. Built to the Ulstein P128 design, the Britoil Journey
has an overall length of 234.5ft (71.5m), deadweight of 3,000t and deck area of 610m². The vessel is currently being marketed extensively.

• Malaysia’s MISC has unveiled a newbuild floating production storage and offloading (FPSO) unit said to be one of the largest and greenest in the market. The floater, called Mega-Module Engineering and Green Architecture
(MMEGA), is the world’s first to use mega-module topsides that minimise interfaces and improve system integration and incorporates sustainable technologies into the design, which has been granted an in-principal approval by
the American Bureau of Shipping (ABS). MMEGA is based on modern spread-moored 5th generation FPSOs for deepwater and ultra-deepwater fields, with a design life of 35 years. According to MISC, the design reduces the
overall engineering, procurement, construction, installation, and commissioning (EPCIC) schedule, optimises the capital expenditure, and has the potential to reduce CO₂ emissions by nearly 40%.The vessel has a double-sided
single-bottom hull and has been engineered to accommodate eight topside mega-modules, with a riser balcony at the port side that can hold up to 51 riser slots. The topsides process and utility systems can process 225,000
bopd and 424 mmscfd of gas with 250,000 bpd of water injection and treat up to 60 mol% CO₂ in the well stream. MMEGA is capable of storing 2mbbls of oil and offloading 1mbbls of oil in 24 hours.

• The sale of DP2 PSV Armada Tuah-300, with 4,250 dwt, could soon be confirmed. The vessel was built in 2013 and carries a Malaysian flag. Market sources suggest strong interest from Boskalis, though whether other
contenders are still in play is unclear. It is presently working for Shell Sarawak on a long-term contract and is expected to become free in June. The handover to the new owners is expected to occur next month sometime.

• Offshore and marine services provider Kim Heng Offshore (Kim Heng) has secured a contract valued at US$7.8 million to provide design, engineering, modification and shipbuilding services for a marine-based asset. It is for a
company in Taiwan in relation to offshore renewables. This latest contract has boosted the mainboard-listed company’s orderbook to an estimated value of US$75.34 million. Kim Heng does not disclose its orderbook numbers.
CEO Thomas Tan said the company is well positioned to capture more contracts in 2023, especially in offshore renewables projects. In February, the company reported a second-half net profit of US$1.73 million for the year
ended 31 December 2022, rebounding from a six-month loss of US$1.88 million a year earlier. For the full year to end-December, the Singapore based company posted net earnings of US$5.88 million, reversing a US$4.44
million loss in financial year 2021. Gross profit margins for the second half expanded to 40% from 27% for a year earlier. For the full year, margins expanded to 35% from 25% in 2021. The company’s balance sheet was also
stronger at end-December 2022, with cash and cash equivalents at US$8.81 million. Overall cash generated from operating activities after changes to working capital and income tax paid amounted to US$14.24 million.

• Penguin International Limited (Penguin) has delivered an all-electric ferry called “Penguin Refresh”. The project is dubbed Electric Dream. It will start operating in May and will be carrying passengers between mainland
Singapore and Shell Bukom Island. This landmark electrification project is a first for Shell worldwide and a first for Singapore. The ferry is designed to cruise at a speed of 21 knots, while ensuring a safe, efficient and silent
commute for passengers and eliminating about 1,427 tons of CO₂ emissions a year. This amount of CO₂ reduction is about 20 times more than that of a typical 80-pax electric bus in Singapore. The voyage distance is about 3
nautical miles with an estimated duration of 12 minutes, each way. It has a capacity for 200 passengers. It will be joined by two more ferries later this year. Together, the three electric ferries will eliminate more than 6,000 tons
of CO₂ annually from the skies over Singapore. That is the emission equivalent from three conventional ferries. The company bore the sole responsibility of financing the project. As the project became known in the market, the
company received several offers from investors and lenders. The company decided to take up an EFS-Green loan from DBS Bank and Enterprise Singapore. The EFS-Green loan is not just a term loan. It represents the market’s
endorsement of the Electric Dream. Penguin had previously delivered a hybrid-electric pilot boat to Shell Bukom and a hybrid-electric patrol boat to Singapore’s Maritime and Port Authority. It is currently executing a variety of
decarbonisation projects involving alternative fuels and alternative propulsion systems for crew transfer vessels, crew boats and passenger ferries.

Asia Pacific Offshore Report | May 2023 16

 Asia Pacific Offshore Rig List
Rig Manager Rig Name Type Status Country Rig Manager Rig Name Type Status Country Rig Manager Rig Name Type Status Country
ADES Offshore Admarine 687 (ex-DD4) Jackup Contract Preparation Singapore Sapura Energy Sapura Esperanza Semi-Tender Drilling Malaysia PV Drilling PV Drilling VI Jackup Drilling Vietnam
ADES Offshore Admarine 689 (ex-DD5) Jackup Contract Preparation Singapore Sapura Energy Sapura Berani Semi-Tender Drilling Singapore VietSovPetro (NOC) Cuu Long Jackup Drilling Vietnam
Awilco Drilling PLC Nordic Winter Semisub Cancelled Singapore Sapura Energy Sapura Pelaut Semi-Tender Warm Stacked Malaysia VietSovPetro (NOC) Tam Dao 01 Jackup Drilling Vietnam
Awilco Drilling PLC Nordic Spring Semisub Cancelled Singapore Seadrill Ltd West Prospero Jackup Cold Stacked Malaysia VietSovPetro (NOC) Tam Dao 02 Jackup Drilling Vietnam
Arabian Drilling Gyme (Arabdrill 150) Jackup Contract Preparation Singapore Seadrill West Vencedor Semi-Tender Warm Stacked Malaysia VietSovPetro (NOC) Tam Dao 03 Jackup Drilling Vietnam
Borr Drilling Hild Jackup Contract Preparation Singapore Transocean Discoverer Luanda Drillship Cold Stacked Malaysia VietSovPetro (NOC) Tam Dao 05 Jackup Drilling Vietnam
Borr Drilling Heidrun Jackup Under Construction Singapore Transocean GSF Development Driller I Semisub Cold Stacked Malaysia Borr Drilling Skald Jackup Drilling Thailand
Borr Drilling Huldra Jackup Under Construction Singapore Transocean Deepwater Nautilus Semisub Cold Stacked Malaysia
Borr Drilling Mist Jackup Drilling Thailand
Borr Drilling Tivar Jackup Contract Preparation Singapore Velesto Energy Naga 2 Jackup Drilling Malaysia
Japan Drilling Hakuryu-11 Jackup Drilling Thailand
Borr Drilling Vale Jackup Under Construction Singapore Velesto Energy Naga 3 Jackup Drilling Malaysia
Sapura Energy Sapura T-10 Tender- Assist Drilling Thailand
Borr Drilling Var Jackup Under Construction Singapore Velesto Energy Naga 4 Jackup Drilling Malaysia
Sapura Energy Sapura T- 12 Tender Assist Drilling Thailand
Diamond Offshore Ocean Apex Semisub Shipyard / SPS Singapore Velesto Energy Naga 5 Jackup Drilling Malaysia
Sapura Energy Sapura T-11 Tender-Assist Drilling Thailand
Keppel FELS CAN-DO Drillship Under Construction Singapore Velesto Energy Naga 6 Jackup Drilling Malaysia
Sapura Energy Sapura T-18 Tender Assist Drilling Thailand
Sapura Energy Sapura Raiqa Semi-Tender Under Construction Singapore Apexindo Raisis Inland Barge Warm Stacked Indonesia
Sapura Energy Sapura T-17 Tender Assist Drilling Thailand
TS Offshore Limited TS Jasper Jackup Under Construction Singapore Apexindo Raissa Inland Barge Cold Stacked Indonesia
Shelf Drilling Shelf Drilling Chaophraya Jackup Drilling Thailand
Transocean Dhirubhai Deepwater KG2 Drillsip Contract Preparation Singapore Apexindo Tasha Jackup Drilling Indonesia
Shelf Drilling Shelf Drilling Krathong Jackup Drilling Thailand
Velesto Energy Naga 8 Jackup Drilling JDA Apexindo Yani Inland Barge Drilling Indonesia
Shelf Drilling Shelf Drilling Enterprise Jackup Drilling Thailand
Borr Drilling Thor Jackup Drilling JDA China Oilfield Services Ltd. Asian Endeavor 1 Jackup Drilling Indonesia
Energy Drilling Pte Ltd. EDrill-1 Tender Assist Drilling Thailand
Borr Drilling Idun Jackup Drilling Malaysia China Oilfield Services Ltd. SinoOcean Peace Jackup Drilling Indonesia
Energy Drilling Pte Ltd. EDrill-2 Tender Assist Drilling Thailand
Borr Drilling Gunnlod Jackup Drilling Malaysia China Oilfield Services Ltd. SinoOcean Harvest Jackup Drilling Indoneisa
Seadrill Ltd. (Energy Drilling) T-15 Tender Assist Drilling Thailand
Diamond Offshore Ocean Monarch Semisub Cold Stacked Malaysia Essar Oilfield Services Essar Wildcat Semisub Drilling Indoneisa
China Oilfield Services Ltd. Shen Lan Tan Suo Semisub Drilling Myanmar
Diamond Offshore Ocean Rover Semisub Cold Stacked Malaysia Japan Drilling Hakuryu-14 Jackup Drilling Indonesia
Edrill Guo Hai Tai He Semi- Tender Drilling Myanmar
Diamond Offshore Ocean Onyx Semisub Cold Stacked Malaysia UMAS 1 (Petroserv SA) SSV Catarina Semisub Shipyard Indonesia
PV Drilling PV Drilling II Jackup Drilling Indoneisa Borr Drilling Saga Jackup Drilling Brunei
Japan Drilling Hakuryu-5 Semisub Drilling Malaysia
Seadrill T-16 Tender -Assist Warm Stacked Indonesia Valaris Valaris 115 Jackup Drilling Brunei
Noble Drilling Noble Viking Drillship Drilling Malaysia
Noble Drilling Noble Tom Prosser Jackup Contract Preparation Malaysia Shelf Drilling Hibiscus Inland Barge Cold Stacked Indonesia Sapura Energy Sapura Alliance Semi-Tender Drilling Brunei

Nabors Nabors 453 Platform Rig Cold Stacked Malaysia Vantage Soehanah Jackup Drilling Indonesia PV Drilling PV Drilling V Semi -Tender Drilling Brunei

Nabors Pool 488 Platform Rig Cold Stacked Malaysia Valaris Valaris 106 Jackup Drilling Indonesia Noble Drilling Noble Deliverer Semisub Drilling Australia

PV Drilling PV Drilling III Jackup Drilling Malaysia PT Blue Sky Langsa Deep Venture Drillship Contract Preparation Vietnam Valaris Valaris 107 Jackup Drilling Australia

SAAG Drilling Telaga Usaha Platform Rig Cold Stacked Malaysia ArktikMorNefteGazRazvedka Murmanskaya Jackup Drilling Vietnam Valaris Valaris MS-1 Semisub Stand-by Australia
Sapura Energy Sapura T-9 Tender Assist Drilling Malaysia PV Drilling PV Drilling I Jackup Drilling Vietnam Valaris Valaris DPS-1 Semisub Drilling Australia

Asia Pacific Offshore Report | May 2023 17

Acronyms & Abbreviations
AHTS Anchor Handling Tug Supply Vessel mmt Million Metric Ton
APAC Asia Pacfic Mn Million
Avg. Average MoM Month-on-Month
Bbl Barrel NA Not Available
Bn Billion OECD Organisation for Economic Co-operation Development
Bcf Billion Cubic Feet OEM Original Equipment Manufacturer
c. Circa OPEC Organization of the Petroleum Exporting Countries
CCS Carbon Capture and Storage OPEC+ Organization of the Petroleum Exporting Countries (Plus 10 Non-OPEC Members)
DS Drillship PSV Platform Supply Vessel
E&P Exploration and Production Q Quarter
EIA Energy Information Administration QoQ Quarter-on-Quarter
EOR Enhanced Oil Recovery SPS Subsea Production System
EPC Engineering, Procurement and Construction SS Semisubmersible
EPCI Engineering, Procurement, Construction and Installation TBA To Be Announced
Est. Estimated UAE United Arab Emirates
Exp. Expected UK United Kingdom
FEED Front End Engineering and Design USA United States of America
FID Final Investment Decision Vs Versus
FPSO Floating Production, Storage and Offloading Unit WTI West Texas Intermediate
GDP Gross Domestic Product YoY Year-on-Year
GoM Gulf of Mexico YTD Year to Date
H Half # Number of
HI High Impact
IEA International Energy Agency
iEPCI Integrated Engineering, Procurement, Construction and Installation
IOC Integrated Oil Company Africa – Algeria, Angola, Benin, Cameroon, Congo, Djibouti, Egypt, Equatorial Guinea, Gabon, Ghana, Ivory Coast, Libya, Mauritania, Morocco,
IRM Inspection, Repair and Maintenance Mozambique, Nigeria, Republic of Congo, Senegal, South Africa, Tanzania, Tunisia.
JU Jackup Asia – Bangladesh, Brunei, Cambodia, China, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, Singapore, South Korea, Taiwan, Thailand, Vietnam.
kbpd Thousand Barrels of Oil Per Day
kboepd Thousand Barrels of Oil Equivalent Per Day Australasia – Australia, Timor Leste, New Zealand, Papua New Guinea.
km Kilometre
KSA Kingdom of Saudi Arabia Eastern Europe & the Commonwealth of Independent States (CIS) – Azerbaijan, Bulgaria, Kazakhstan, Poland, Romania, Russia, Turkmenistan, Ukraine.
LNG Liquified Natural Gas Middle East – Iran, Iraq, Israel, Kuwait, Oman, Qatar, Saudi Arabia, Turkey, United Arab Emirates, Yemen.
LOI Letter of Intent
m Metre North America – Canada, USA.
mmbbl Million Barrels
South America – Argentina, Barbados, Brazil, Chile, Colombia, Ecuador, Falkland Islands, Guyana, Martinique, Mexico, Peru, Trinidad and Tobago,
mmbpd Million Barrels Per Day
Venezuela.
mmboe Million Barrels of Oil Equivalent
mmboepd Million Barrels of Oil Equivalent Per Day Western Europe – Albania, Croatia, Cyprus, Denmark, Finland, Germany, Greece, Ireland, Italy, Netherlands, Norway, Spain, UK.

Asia Pacific Offshore Report | May 2023 18

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