Diamond Offshore and Beach Energy sign new drilling agreement and settle termination dispute

Australia’s Beach Energy has signed a new offshore drilling agreement with Diamond Offshore for the use of 2013-built semi-submersible rig Ocean Onyx for the Victorian Otway Basin offshore drilling campaign.

The agreement is for the drilling of six wells firm, with three options, and drilling is scheduled to commence between December 2020 and March 2021. The agreement also includes provisions for COVID-19 related costs and delays.

Beach and Diamond have also signed a settlement agreement, which ends all legal proceedings regarding the termination of the previous drilling agreement. In April, Beach terminated the previous contract with Diamond after the rig arrived in Victorian waters in mid-April, later than had been agreed. Diamond, which subsequently filed for chapter 11, filed a complaint in the Bankruptcy Court seeking a determination that the termination by Beach is invalid.

Matt Kay, CEO of Beach Energy, commented: “We are pleased to constructively engage with Diamond and sign a new drilling agreement, in what has been a difficult time for the industry. It means Beach can move forward with its plans to develop additional natural gas supplies for the east coast gas market.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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