By Sa’ad Bashir, in Dar es Salaam
Orca exploration expects to start executing the offshore phase of the development programme for the Songo Songo gas field in September 2015. The company has entered into a drilling contract with Paragon Offshore plc for the use of its M826 Mobile Drilling Workover Rig, as well the provision of associated services.
The company currently produces 48.5MMscf/d of gas from the field, with sales to both power and industrial users.
The operations are planned to include workovers (being the removal and replacement of production tubing strings) on three existing wells (SS5, SS-7 and SS-9) and the drilling of one new well (SS-J). The Company also retains the option to drill a further two wells, subject to the success of the workovers.
The Paragon M826 Mobile Drilling Workover Rig was selected to operate in the somewhat unique shallow water operating environment around Songo Songo Island. The Company still needs to obtain certain regulatory and contractual approvals related to certain aspects of the development programme.
The drilling contract provides for a commencement date between 1st August 2015 and 21st September 2015, with the exact date being the date the drilling rig arrives at the Company’s first well location in Songo Songo. The contract carries a minimum duration of 90 days and a minimum financial commitment of $21 million excluding withholding tax.