ERHC Energy Inc (ERHE)

[RUBY1100]

Rig deal clears way in the JDZ

By Upstream staff

China's Sinopec has struck a deal to charter the Aban Abraham drillship for a multi-well debut exploration campaign in the deep-water joint development zone between Nigeria and Sao Tome&Principe, writes Iain Esau.

Sinopec and Geneva-based Addax Petroleum, one of its partners in Block 2, secured the rig and expect to take on the Aban Offshore-owned drillship in the second half of 2008.

Initially, one wildcat will be drilled in Block 2, said minority partner Equator Exploration. However, up to nine further wells could be drilled across blocks that Addax and Sinopec operate.

The agreement covers five firm wells and five optional probes.

The estimated duration of the contract is 300 days for the firm wells, which could increase to 600 days if the optional wells are declared.

The drillship has been chartered for a maximum of $410,000 per day.

The drillship is owned by India-listed Aban Offshore and is currently undergoing extensive refurbishment and modification at Sembawang Shipyard in Singapore.

The upgraded vessel will be designed to drill in water depths of up to 2100 metres.

Before the Sinopec/Addax contract begins, the unit will be deployed by Kosmos Energy and Pioneer Natural Resources on an extensive West African drilling programme.


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16 March 2007 00:01 GMT | last updated: 16 March 2007 00:01 GMT