Oil and Gas News

Beach pulls pin on Otway Basin contract

Beach Energy and its joint venture partner OGOG have terminated Diamond Offshore Drilling’s contract as operator of the Ocean Onyx rig for the Victorian Otway Basin project.

The company stated that due to the rig’s arrival in mid-April being later than what was agreed and specified in the rig contact, Beach had the right to terminate the contract.

The rig would have been used for the Victorian Otway Basin joint venture project, which involves the development of the Otway Basin gas reserves and will target increasing gas supplies for the Victorian gas market.

Despite termination of the contract, Beach advised that all parties are engaging in discussions with regard to the future operations of the Ocean Onyx rig and the Victorian Otway basin offshore drilling campaign.

The joint venture is open to agreeing to a new contract in due course. In addition, Beach has reassured that the cancellation of the rig contract will have no impact on its 2020 production.

As operator of the Victorian Otway Basin joint venture, Beach remains committed to the development of the offshore project and takes into consideration the COVID-19 epidemic and associated restrictions.

©2019 All Rights Reserved. Oil & Gas is a registered trademark of Prime Creative Media.