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Archive for the ‘drilling’ Category

Lease sale Big Beautiful Gulf 3 (BBG3) will be held on 8/12/2026. The Final Notice of Sale is attached.

Given the rather tepid BBG1 and BBG2 results and the high sale frequency, robust bidding is not expected. Nonetheless, the BBG bidding patterns and tract evaluations have been interesting, most notably BOEM’s rejection of LLOG’s bid for Keathley Canyon 828, an expired lease block in the their Buckskin field.

Keathley Canyon 828 is not among the blocks listed for sale at BBG3. Per the Notice of Sale (p. 4), “any lease blocks whose high bids were rejected and not appealed in the immediately preceding Big Beautiful Gulf lease sale, are expected to be included as eligible for lease.” Can we therefore assume that either the KC 828 bid rejection or the prior lease expiration is being appealed?

The legislatively mandated BBG lease terms are attractive – 10 years and 12.5% royalty for deepwater blocks. A more recent legislative directive requires (wrongly in my opinion) the approval of downhole commingling requests. This accelerates the return on investments in deepwater, high pressure reservoirs. Such commingling has presumably contributed to record Gulf oil production in 2025. The longer term concern is the impact on ultimate oil and gas recovery.

Meanwhile, the Gulf rig count and well start numbers continue to disappoint. Baker Hughes (7/2/2026) lists only 4 active rigs in the deepwater Gulf – one each in the Alaminos and Mississippi Canyon areas and two in the Green Canyon Area. BSEE’s borehole file lists only 15 new deepwater exploratory well starts YTD.

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Aban Pearl listing off Trinidad in August 2009 before sinking offshore Venezuela in 2010

Now that we are friends with Venezuela, can someone in the Administration ask them to release the report on the sinking of the Aban Pearl semisubmersible drilling rig in May 2010? This incident is of great interest to operating companies, safety regulators, and contractors worldwide.

Posts on the Aban Pearl sinking.

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Lars Herbst saw this “beauty” while sitting at a rooftop “establishment” in Pensacola. Reminded him of our temporary Pensacola office and Destin Dome drilling. Lars had visions of returning to work as Pensacola District Manager! 😉

Upon returning to his senses, Lars reports that it’s the Borr jack-up rig Odin purchased from Noble’s fleet. The rig was brought from Mexico to Pensacola for modifications, and will be under contract to Cantium to drill in the GOA, but not the Eastern GOA!

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DOT and others shouldn’t make statements they can’t back up (see the X post below).

As a supporter of responsible offshore oil and gas operations, I find statements like this to be irresponsible and embarrassing. Sable Offshore is not using newer or safer drilling technology than is used in many other areas.

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Offshore Guyana seismic line

Oil Now Guyana reports that an Exxon artificial intelligence model built using Guyana’s offshore seismic data was able to identify already-discovered crude oil accumulations with a 90% success rate.

Neil Chapman, Exxon: “…in Guyana, we have built an agent, a model…which if we give it the seismic data that we’ve run and we say, go find the crude oil, it can find all the crude oil that we’ve already found with a 90% success rate.”

(Note: Humans are also great at identifying discoveries after the fact 😉. How many false positives were there?)

Chapman said the company has also used artificial intelligence to review well data from across the industry.

“We have analyzed the well data from 50,000 wells that have been drilled in the industry all over the world, 50,000,” Chapman said. “It would have taken us 15 years to do that analysis. We’ve done it in a matter of weeks.” 

Despite the many advances in exploration technology over the years, one caveat remains unchanged: “We don’t know if they’re going to be successful or not until you drill a hole, you can never be sure,” Chapman said. 

AI should enhance not just geophysical interpretations, but all aspects of offshore exploration and production including site surveys, well planning and construction, drilling, well control, structure designs, production and pipeline monitoring, and safety management. Hopefully, the net result will be increased production at lower cost with improved safety and environmental performance, and that the workforce will not be reduced, but will become more efficient.

Stunning picture taken offshore Guyana

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Superhot geothermal is exciting because of the unlimited potential, universal availability, Star Wars drilling technology, and the dynamics of supercritical fluids.

There are still hurdles to clear, and commercial power generation is 5+ years away, but the promise is tantalizing.

Gyroton millimeter wave drilling technology

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TDI Brooks International vessel to conduct piston coring and surface geochemical survey

A research vessel departed Trinidad last weekend bound for Jamaica to conduct seabed surveys, starting this week, aimed at confirming whether oil-like substances detected beneath the island’s waters are commercially viable crude.

This survey represents a key milestone in advancing our Jamaica exploration programme,” said Brian Larkin, CEO of United Oil & Gas.

piston coring

The piston coring survey will involve the collection of 40–60 seabed core samples across the Walton and Morant Basins, accompanied by bathymetric, multibeam echo-sounding, and heat-flow surveys.

The data will be analyzed for geochemical and thermal signatures to confirm the presence of thermogenic hydrocarbons, assess source rock maturity, and refine basin modeling, materially enhancing the definition of key prospects, including Colibri and Oriole.

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Per JL Daeschler, Sedco’s Far East, North Sea, and South America operations were all run from Dallas in the late 60’s. In 1970, an old schoolhouse became Sedco’s corporate headquarters (see picture and narrative pasted above). Thank you Bill Clements for saving this historic building – what a beautiful headquarters for the challenging and booming offshore industry!

JL: After 2 years with SEDCO in Miri, East Malaysia (1971) I moved to Brownsville Tx. But in 1979 I returned to the old school house in Dallas in secondment to Sedco Hamilton Production Services from Hamilton Brothers Oil & Gas. The main objective of the joint venture was promotion of floating production systems and in particular use of semi sub technology.  One project assignment was the BP “Buchan” field in the North Sea. (Note: this work was a precursor to the deepwater floating production units that are now the method of choice for deepwater development in the Gulf.)

JL is pictured (right below) on the Sedco 135 during operations offshore East Malaysia.

Wisdom from JL: Rules were pretty simple, as you can read on the rig wall in the picture. No App, pin, or password…. In fact no internet and mobile phone, just a radio operator.

Safety was grounded in the attitude and respect of 100 + people living and working together  (47 working / 47 sleeping and 6 managing and protecting others.  More difficult was the integration of the visiting contractors, logging/cementing / diving / VIPs. (Still true today!)
No division amongst ages, nationality ( sometimes 6 of them) religions, Job position , and ethnicity. Just get along and do what you get paid for!
Safety issues were dealt with immediately with short, unscheduled “toolbox” meetings – less reporting and more fixing.

(As an aside, Dan Bourgeois and I were on assignment to Petronas in 1977 and visited their East Malaysian operations. Does anyone in Petronas remember us? 😉)

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Bill Clements founded the Southeast Drilling Company (SEDCO) in 1947 with two partners and a loan. Clements grew the business from three used drilling rigs into a global leader and a deepwater pioneer. Through SEDCO, Clements developed strong international relationships that included the Shah of Iran, Reza Pahlavi. Clements went on on to serve as Deputy Secretary of Defense. He served as Governor of Texas from 1979-91.

BOE contributor and pioneering subsea engineer, JL Daeschler, fondly recalls working for Clements:

He looked after the employees well, knew everyone by name on all his rigs, and was very encouraging. He was a great leader for the emerging deepwater industry. I often discussed a project with him on early Saturday morning office calls. Despite worldwide rig locations and time differences, he was able to read and digest all the morning reports. He conducted crisp executive meetings every Friday – very few speakers and to the point. He was no time waster. I learned a lot!

Sedcon 445, pioneering deepwater drillship, 1971

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This picture was posted on the “Rig Pigs” Facebook page by Huston Funk. Per Huston: First crew photo from the Deepwater Horizon. Taken in the Indian Ocean after we had left Singapore.”

Commenters identified 3 Macondo victims in the photo: Jason Anderson, Don Clark, and Stephen Curtis 🙏

Tribute to the Deepwater Horizon victims

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