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Finance
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Shell moves Deepsea Mira rig from Namibia to Trinidad and Tobago for gas development drilling

By
Diligence Posts Editorial Team

Shell is moving the Deepsea Mira, a semi-submersible drilling rig, from the waters off Namibia to Trinidad and Tobago, where it will drill development wells. The transfer follows the end of the rig's exploration work in the Orange Basin and points to more deepwater activity in the Caribbean.

The Deepsea Mira is owned by Northern Ocean and managed by Odfjell Drilling, which operates it under contract to Shell. It is described as a winterised, ultra-deepwater unit built for harsh offshore conditions. The report on which this article is based did not give the day rate, the length of the contract or the date the rig is expected to reach Trinidad and Tobago.

The rig's recent work was in West Africa. It took part in exploration drilling in the Orange Basin, a deepwater area off Namibia that has attracted several large operators, and the work included the Merlin-1X campaign. The report did not say what the wells found. Completion of that programme has freed the rig for a new assignment on the other side of the Atlantic.

Under a new agreement with Shell, the Deepsea Mira will carry out deepwater development drilling in Trinidad and Tobago. The stated purpose is to maintain and expand natural gas supply. The report did not name the fields or the number of wells, nor did it say when drilling will begin. Development drilling differs from exploration. It targets reserves that have already been found, with the aim of bringing them into production.

Gas supply matters to the country's economy. Trinidad and Tobago has long relied on natural gas to feed its liquefied natural gas exports and its industrial plants, including those making petrochemicals. Industry reporting in recent years has shown domestic gas output falling from earlier highs, which has left some of that capacity short of feedstock. This background was not part of the report on the rig, and readers should check current production figures from the Ministry of Energy or from independent analysts. New development wells are one way to slow or reverse the decline, although the report did not say how much additional gas the campaign is expected to deliver.

The move also says something about the market for drilling rigs. The number of units able to work in deep water and rough seas is limited, and operators tend to shift them between regions when one campaign ends and another is ready to start. A rig leaving Namibia for the Caribbean covers a long ocean transit, which adds cost and time. Companies accept that when a suitable rig is not available locally or when a contract in a new area justifies the journey. The report suggested that major operators are directing high-specification rigs towards development projects, but it gave no data on rig availability or day rates to support a wider conclusion.

Several points remain unreported. Shell has not been quoted, and there was no comment from Northern Ocean or Odfjell Drilling on the terms. The report did not say whether the Trinidad and Tobago work is part of an existing Shell project or a new one, or whether the government of Trinidad and Tobago has commented. It also did not cover the environmental conditions attached to drilling in the country's waters.

Independent figures would help readers judge the scale of the programme. These include official gas production data, the cost of the contract, and analysis of how many wells are needed to offset the decline in output from older fields. For now, the facts reported are limited. A rig that worked off Namibia is heading to Trinidad and Tobago, and it has been hired to drill for gas.

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