Diamond Offshore (NYSE: DO) has announced it has kicked off a new contract in the UK with Repsol Sinopec after its rig was released early last year by Apache.
The two-well plugging and abandonment programme has now got underway with the Ocean Patriot, which Diamond announced in May as part of a series of deals worth a combined $212m.
“This is an important milestone as it represents the first time we have worked with Repsol in the North Sea,” said Diamond Offshore on social media.
“A big thanks to Repsol for trusting Diamond to execute this program. Our crews on the Ocean Patriot are excited to continue delivering successful outcomes to our clients in the UK North Sea.”
Announced in May, Diamond Offshore said the work would start in September and end in Q4 of this year.
The Ocean Patriot was on contract at the Apache Beryl area from May 2022, and has been due to carry out work there until August 2024.
However But Apache opted to cut the contract for the Ocean Patriot rig short – incurring a $12.4 million hit in the process – with the US-headquartered firm blaming the North Sea windfall tax.
In June it was revealed the US-based operator had suspended all North Sea drilling, blaming the UK’s “burdensome tax and regulatory regime”.