In a landmark deal signaling robust growth, Apus Energy, the Dubai-based energy conglomerate, has entered into a formidable drilling contract for Diamond Offshore’s state-of-the-art Ocean BlackRhino drillship to tap into a promising exploration well off the coast of Guinea-Bissau. This agreement, fetching a daily rate unseen since 2014, underscores the drillship’s deployment to the West African wildcat next year, raising industry benchmarks.

The advanced seventh-generation drillship is poised to embark on a pivotal exploration well in Guinea-Bissau’s territorial waters, a venture that Diamond Offshore unveiled yesterday without disclosing the identity of the charterer. However, industry insiders have pointed to Apus Energy, which has recently expanded its West African portfolio by acquiring significant acreage from PetroNor E&P.

Diamond Offshore has confirmed that the Ocean BlackRhino is slated for a minimum 30-day drilling operation, commencing in July 2024, following the conclusion of its current contract. The deal represents a substantial $15.4 million addition to Diamond’s backlog, excluding mobilization fees. Bernie Wolford, Jr., Diamond’s president and CEO, expressed enthusiasm about the new collaboration, highlighting the seamless transition to the new project and anticipation for next year’s campaign.

The drillship contract, at a striking rate of $513,000 per day, marks a nine-year high, signaling renewed confidence and substantial investment in the energy sector. Furthermore, Apus Energy’s strategic acquisition of PetroNor’s interests in the offshore Sinapa and Esperança licenses, including the promising Atum and Anchova prospects estimated to hold 467 million barrels of oil, has been pivotal in this development.

The transaction with PetroNor encompasses an initial payment covering historical license costs, with additional contingent payments hinging on governmental go-ahead for a development plan and the achievement of sustained production. Jens Pace, PetroNor’s interim CEO, pinpointed that the drilling operation is targeted for the first half of 2024.

The agreement, endorsed by Petroguin, Guinea-Bissau’s national oil entity, encompasses the transfer of the two exploration licenses to Apus Energia Guiné Bissau SA. This significant handover follows PetroNor’s acquisition of majority stakes in these concessions from Svenska Petroleum Exploration and FAR, consolidating a total area of nearly 5,000 sq km rich in hydrocarbon prospects.