Northern Offshore today announced that the Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, ("VGP") has given notice that the last two wells of their four-well program will not be drilled at this time.
Northern Offshore today announced that the Joint Operating Company Vietgazprom, a joint venture between Petrovietnam and Gazprom, ("VGP") has given notice that the last two wells of their four-well program will not be drilled at this time. The second and final well under the current contract is expected to be completed by late September 2012. However, the Company and VGP are currently in discussion to formally suspend the contract to allow for the drilling of the two remaining wells during 2013, at rates, terms and conditions to be mutually agreed at the time of resumption of the suspended program.
Gary W. Casswell, Northern Offshore's president and CEO, said, "While we are disappointed with the news from VGP, we continue to have a strong relationship and look forward to continuing the drilling program for them next year. In the meantime, we are actively pursuing programs for the Energy Searcher in the region, and are optimistic about opportunities for the rig with improved market conditions and increasing dayrates."
Source: Your Oil & Gas News.