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BP Extends Odfjell Contract For Block 18 Off Angola

|Includes: BP p.l.c. (BP)

BP and Odfjell Drilling have entered into a contract amendment securing further work for Odfjell Drilling's Deepsea Stavanger semi-submersible rig on Block 18 off Angola. The contract value is estimated at $210 million.

The contract is for six wells with an estimated total duration of 13 months. In addition, the contract amendment includes two unpriced options for two wells each.

Block 18 includes the Greater Plutonio Project, which is BP's first operated deep-water development project in Angola. It covers an area of 5,000 sq km, at depths varying from 1,200m to 1,600m and has five fields: Galio, Cromio, Cobalto, Paladio and Plutonio.

Production from Greater Plutonio started in Oct-2007 and is currently around 180 Mbbl/d.

Block 18 ownership: BP (50%, operator), Sinopec (27.5%), Dayuan International Development (15.75%), New Bright International Development (4.73%) and Sonangol (2.03%).

In Feb-2014, BP extended Odfjell Drilling's Platform Drilling Services contract in the UK for four years.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.