Oz Beach Energy, Diamond Drilling Sign New Contract

Australian oil and gas explorer Beach Energy has executed a new offshore drilling agreement with Diamond Offshore General Company for the use of the Ocean Onyx semi-submersible rig to undertake Victorian Otway offshore drilling programme, it said on August 17.

The agreement provides for the drilling of up to nine wells (six firm with three options), with drilling operations expected to start between December 2020 and March 2021. The first well in the drilling sequence is expected to be the Artisan 1 exploration well, followed by a series of development wells in the Geographe and Thylacine gas fields, Beach said.

Concurrent with the signing of the agreement, Beach and Diamond have also signed a settlement agreement, which dismisses all current legal proceedings regarding the termination of the previous drilling agreement.

“We are pleased to constructively engage with Diamond and sign a new drilling agreement, in what has been a difficult time for the industry. It means Beach can move forward with its plans to develop additional natural gas supplies for the east coast gas market,” Beach CEO Matt Kay said.