NAMIBIA: Galp Energia Secures Contract for Semi-Submersible Rig Hercules

SFL Corporation has signed a contract with a subsidiary of Galp Energia for the harsh environment semi-submersible rig Hercules with an estimated contract value of approximately $50 million.

The contract is for two wells plus optional well testing and is expected to commence in the fourth quarter of 2023. Without any options, the duration is approximately 115 days including mobilization to Namibia.

Hercules is currently undergoing its special survey in Norway before its mobilization to Canada for a contract before commencing transit to Namibia.

Ole B. Hjertaker, CEO of SFL Management AS, said in a comment: “We are pleased to announce this follow-on contract for the Hercules, which will keep the rig continuously employed until the end of the first quarter of 2024. The new contract illustrates the attractiveness and versatility of the Hercules as a harsh environment oil exploration and development rig for the international market. With increasing demand and few available drilling rigs with Hercules’ capabilities, we see additional upside in day rates and contract term from 2024 onwards”.

Galp has been present in Namibia since 2012 and it currently holds two exploration licenses located in the country’s offshore, namely in PEL 82, formerly PEL 23, in the Walvis basin, and in PEL 83, formerly PEL 28, in the Orange basin.