Shell, Frontier sign JV to build drillships

Shell EP Offshore Ventures Ltd. and Frontier Drillships Ltd., a subsidiary of Frontier Drilling, have signed a deepwater/Arctic drillship joint venture agreement, Shell said Oct. 16.

Under the JV, Shell and Frontier will build and rollout a new drillship concept known as the “Bully” rig, a design that was developed by Frontier in cooperation with Shell’s deepwater experts. Shell said the design offers a flexible, smaller but highly capable, vessel suited for deepwater and Arctic drilling, while reducing the construction and operational costs compared to current new-build drilling rigs of similar capability.

Shell said the Bully drillship’s innovative design offers flexibility and rapid deployment, setting the standard for technologically advanced vessels.

The vessel will be capable of drilling with surface blowout preventers in up to 12,000 feet of water, and will feature an ice class hull, which Shell said allows for safe and efficient operation in Arctic conditions.

The design calls for less crew and fuel, allowing for competitive day rates while offering safer operations.

The new drillship will have a significantly reduced environmental impact due to lower emissions through reduced fuel consumption, high efficiency/low emission engines and lower steel use for construction, Shell said.

The Shell/Frontier JV expects to deliver the first Bully rig to the Gulf of Mexico by early 2010. The vessel will be operated by Frontier under a separate management services contract.

“In meeting the energy challenge, Shell has a significant requirement for drillships in the short to medium term to enable us to undertake our deepwater and potential arctic drilling programs,” Shell E&P executive vice president of development and technology, Dr. Matthias Bichsel, said, the Bully “concept will lead to our drillship requirements being met at lower cost and with improved environmental performance. This, coupled with the ability to rapidly deploy the ‘Bully’ rig to Shell deepwater projects between areas like the Gulf of Mexico, Nigeria, Brazil, the Far East and Northwest Europe brings tremendous advantages for managing our drilling prospects and their sequencing.”

—Petroleum News