UK-listed operator IOG has cancelled a contract for the Shelf Drilling Perseverance jackup rig following the decision to defer the drilling of the North Sea Kelham and Goddard appraisal wells.
The rig, formerly the Noble Hans Deul, has been on contract to the IOG-CalEnergy Resources joint venture since the Elgood well was spudded in April 2021. One of two priced contract extension options had already been exercised with a view to drilling one of the two planned appraisal wells.
However, the operator said Monday that maximising production and rebuilding cash balances would be its key immediate priorities citing current gas market and balance sheet risks.
The rig will be released from its contract after the completion of Blythe H2 operations. IOG said the JV will continue to assess the best options to drill the two appraisal wells by the end of March 2024 and is offering potential farm-in partners up to 50% of the Goddard licence.
