Exxon Drills its first Liberia Well

ExxonMobil began drilling its first well offshore Liberia on November 22, according to a statement by its junior partner.

Canadian Overseas Petroleum Limited (COPL) said November 23 that Exxon commenced drilling operations on the Mesurado-1 exploration well using the drillship Seadrill West Saturn. The Mesurado-1 well is some 50 miles offshore Liberia on Block LB-13 in some 2,500 metres of water. "The well, targeting oil in Late Cretacous sands, is the first well operated by ExxonMobil offshore Liberia," said Calgary-based junior independent COPL. 

Exxon has an 83% operating interest in block LB-13 while COPL has the remaining 17%. offshore Liberia. The duo secured an extension in March on their block until September 2017. Exxon had said last month that the well was planned during November. 

ExxonMobil CEO Rex Tillerson (Photo credit: Exxon)

In contrast Australia-listed but London-based junior African Petroleum said November 23 that its Liberia production sharing contracts for its blocks LB-08 and LB-09 had expired and will not be extended, after efforts both to secure an industry partner and to negotiate an extension with Liberia had failed.

Seadrill West Saturn is an ultra-deepwater drillship with operational history offshore West Africa (Photo credit: Seadrill)

London and Oslo-based drilling contractor Seadrill said in 3Q results November 22 that Seadrill West Saturn was awarded a one-well contract at $225,000/day by Exxon in Liberia – which is a direct continuation of its contract with ExxonMobil in Nigeria that was due to end December 8, 2016. "This results in an estimated total contract backlog increase of $9mn," it said on an upbeat coda to a disappointing set of results full of low day-rate charters on its drillships. Seadrill reported a loss of $656mn in 3Q 2016, chiefly due to an impairment charge on investments of $882mn.   

Mark Smedley, William Powell