Thanks Tommy, always very insightful! Kosmos almost mentioned assets sales to manage the deleverahe process and I think GoM is the most likely source of assets.
Would you guess Wintershell-4 well failure was a drilling or a design issue? Maybe it's out of your area of expertise though.
Thanks for reading and the good question. On asset sales, the new loan with Shell is secured by the US Gulf assets -- there's very likely restrictions on selling those assets without paying back Shell with the proceeds so you can't sell those assets and pay back other debt. They could perhaps sell some of GTA to BP (operator), or maybe someone else. Equatorial Guinea is a possibility but not as high of a valuation on those and the operator, Trident, does not have deep pockets.
Regarding Winterfell, only guessing but sometimes operational issues can arise when using new floaters for various reasons. BlackRhino had previously been in West Africa and moved to the US Gulf for this work for Beacon. Kosmos said the reservoir is fine. Deepwater drilling is complex and its often helpful to have consistency with the rig, crew, operator, etc on development drilling
Thanks Tommy, always very insightful! Kosmos almost mentioned assets sales to manage the deleverahe process and I think GoM is the most likely source of assets.
Would you guess Wintershell-4 well failure was a drilling or a design issue? Maybe it's out of your area of expertise though.
Thanks for reading and the good question. On asset sales, the new loan with Shell is secured by the US Gulf assets -- there's very likely restrictions on selling those assets without paying back Shell with the proceeds so you can't sell those assets and pay back other debt. They could perhaps sell some of GTA to BP (operator), or maybe someone else. Equatorial Guinea is a possibility but not as high of a valuation on those and the operator, Trident, does not have deep pockets.
Regarding Winterfell, only guessing but sometimes operational issues can arise when using new floaters for various reasons. BlackRhino had previously been in West Africa and moved to the US Gulf for this work for Beacon. Kosmos said the reservoir is fine. Deepwater drilling is complex and its often helpful to have consistency with the rig, crew, operator, etc on development drilling
*also, not almost
Very informative as always Tommy
Thanks for continuing to read, Gp. More to follow. Hopefully this post does not make me look stupid in 6 months!
Well considering you are the smartest one I’ve found on the deepwater substack I highly doubt that!