Oil and gas exploration investment company Sirius Petroleum has announced that it has entered into a key vendor financed offshore drilling contract with COSL Drilling Pan-Pacific, for the provision of a high specification jack-up rig that will be utilised by the company to drill a multi well campaign as part of its shallow offshore development strategy in Nigeria, commencing in the first half of 2017.
Under the contract, COSL will extend delayed invoice and payment terms to Sirius which will have the effect, dependent on successful drilling, of deferring a significant portion of the cost of the rig until after the company commences the production of hydrocarbons, but is otherwise on normal industry terms.
The contract envisages a drilling programme on the Ororo Field and could be expanded to include other potential offshore assets.
“We are delighted to have secured this highly competitive, vendor financed rig contract with COSL, one of the world’s leading oilfield service companies. This innovative financing solution affirms our belief in the quality of the Ororo field and our confidence in achieving first hydrocarbons in H1 2017. We look forward to working with COSL and our other project partners to commence the development of our interests in Nigeria,” said Bobo Kuti, CEO of Sirius.