Norwegian energy giant Equinor has encountered difficulties during its drilling operations on the Sitka prospect located offshore Canada, which forced it to restart the well. As a result, drilling operations will take longer than previously expected.
The Sitka O-02A well is part of Equinor’s two-well campaign in the Flemish Pass off Canada, aiming to boost the resources for the Bay du Nord development. Water depths at well locations range from approximately 450 to 974 meters.
The first well in this campaign, on the Cambriol oil discovery, was spud on 24 May , using the West Hercules semi-submersible. The appraisal well was completed on 24 July but the results still have not been revealed by the operator.
Following the completion of the Cambriol J-31 well, the rig started drilling the Sitka well in August. This well was originally started as part of Equinor’s 2020 exploration drilling programme offshore Newfoundland, with an intention to complete it at a later stage. After drilling the top hole using the Transocean Barents rig, the well was abandoned in October 2020.
However, a spokesperson for Equinor has now confirmed for Offshore Energy that, after the return to Sitka drilling in August 2022, the company encountered operational challenges, which forced it to restart drilling operations. The spokesperson has not revealed any details about the nature of these challenges but did say that operations are now expected to be completed in late-fall 2022. Previously, the completion was expected in the fall.
The West Hercules rig is currently managed by Seadrill and owned by SFL Corporation. According to the drilling contractor’s fleet status report from late August, its contract with Equinor is expected to end in September even though the previous expectation was for it to end in October 2022. Equinor did not comment on the effects of delay on the duration of the rig’s contract. Following the completion of this contract, the management of the rig will be transferred to Odfjell Drilling .
Meanwhile, Equinor is working on early-phase concept studies for its operated Bay du Nord project with expectations to file the development application within the coming year. As the development project matures, the company will continue its procurement processes related to Bay du Nord, including options such as the recent expression of interest for FPSO Topside Engineering and Procurement for FEED, with an option for execution.
The final investment decision for Bay du Nord is expected in the next couple of years while the first oil could be achieved as early as late 2028. Previously, the FID was expected in 2021 and the first oil in 2025.
Oil major BP is expected to join Equinor as a partner in Bay du Nord this year. BP has recently expressed its excitement about joining this project, believing it is a “fantastic discovery.”