Oslo-listed but Cyprus domiciled drilling contractor Songa Offshore has struck a firm contract with Zarubezhneft for the use of its semi-submersible rig Songa Mercur offshore Cuba.
The firm contract is for 325 days with minimum aggregate total revenue of about $88million, inclusive of mobilisation. Revenues may vary depending on when drilling operations start and whether an extension to the drilling programme is required for well testing or other operational considerations.
Zarubezhneft’s drilling campaign off Cuba is expected to get under way in late November. However, the contract with Songa started on July 1 with the rig due to leave Malaysia after a checkover.
The Mercur will journey to Trinidad where it will remain on a standby day rate pending the start of the drilling campaign.
Russian company Zarubezhneft dates from the Soviet era, having been founded in 1967 for operations in friendly countries such as Cuba, Iran and Vietnam, where it has a long track-record working with Petro-Vietnam.
The Cuba relationship is a long one, albeit there was a 20-year break from the late-80s through to 2009 when a new production-sharing contract-based co-operation agreement reaching to 2034 was signed.
Under the current arrangement, Zarubezneft was due to start exploration of its Cuban offshore concessions last year. It is also engaged onshore, working to boost heavy crude output from the Boca de Jaruco field.
News of the Songa rig hire comes just a few weeks after Repsol said it was calling a halt to its Cuban exploration programme following the drilling of a dry hole.
Elsewhere, Seadrill is in advanced discussions regarding a $1.16billion five-year contract for the drillship West Polaris that would be in direct continuation of the existing assignment in Africa that ends in October.