Galp hires exploration rig for Namibia’s Orange Basin

SFL Corporation has signed a contract with Portuguese operator Galp Energy for the lease of a semi-submersible rig for drilling on the PEL 83 concession in Namibia, the Bermuda-based vessel and chartering company announced on Friday.

The deal will see the Hercules rig drill two wells along with optional well testing over a period of 115 days.

Works are expected to begin in Q4 2023.

Cost of the contract is estimated to be worth around USD 50 million.

“The new contract illustrates the attractiveness and versatility of the Hercules as a harsh environment oil exploration and development rig for the international market,” said Ole B. Hjertaker, CEO of SFL Management.

Galp Energy operates the 10,000-square-kilometre PEL-83 block located on the Orange Basin in Namibia near the border with South Africa.

The operator holds an 80% stake in the concession, along with Namibia’s NOC Namcor with a 10% stake and local independent Custos Energy with the remaining 10% stake.

In 2023, a Shell-led consortium hit pay on the Jonker-1X well and the Graff-1x well on the PEL-39 concession on the Orange Basin.

In February 2023, a separate consortium led by TotalEnergies made a significant light oil discovery at the Venus-1x well in the PEL-56 concession on the same basin.