Northern Offshore contracted to drill at Sepanjang block

Bermuda-based drilling firm Northern Offshore, Ltd. announced on Wednesday that it, through PT. Patra Drilling Contractor (Indonesia), has been awarded the deepwater drilling contract by by PT. EASCO East Sepanjang, the operator of East Sepanjang block, offshore East Java.

The contract calls for Drillship Energy Searcher to begin work upon completion of its commitment to Galoc Production Company in the Philippines, expected to be beginning of December 2007.

The contract area is the East Sepanjang area offshore East Java in water depths up to 570 meters, the company said.

Contract duration is expected to be 63 days (or the time required to drill one well), not including mobilization and demobilization.

The operating dayrate will be US$285,000 per day with separate mobilization fee of US$2.5 million and demobilization fee of up to US$1.7 million.

EASCO, which has 51 percent interest in Sepanjang is the block's operator. Total E&P and Inpex has 27 and 22 percent in the block, respectively.(alex)