Commencement of "Services" is when the full $225K rate is activated. This is the "spud" date and is defined by jetting in the 36" conductor housing into the mud- that 36" will house the 30" conductor pipe that will have the wellhead welded to it. After the riser-less equipment is installed, then they will run the riser (which will take while with this much water depth). Then we will drill each section, hanging off each casing string in that wellhead down to TD coming in July-early Aug.
So in summary, everything is full stream ahead. Notice is already given as outlined in the 8K. Im not sure why everyone thinks there is some secondary notice triggering further mobilization taking an additional 28 days yet to happen. The only orders to be given to move things forward at this point will be to move rig 1mi from drilling coordinates and jetting in the 36" pipe. That will NOT take 28 days...the stuff that takes 28 days has started "at the moment the rig entered Guinea waters"
That all being said, Im not saying there aren't challenges and wont be slight delays. This is now the 3rd time I will say that personnel and permitting piece is likely the big challenge as it requires gov involvement. BUT, its part of the SMSR rate we are paying now, and it is underway NOW.
Im not going to waste anymore time on this topic. You guys can interpret this 8K how you like....happy Holiday weekend where you can be assured PACD, SLB, HDYN and many others ARE working hard :)
2. Due to the late notice by Company to Contractor for mobilization of the drilling unit, Contractor shall endeavor to use its best efforts to mobilize the rig to be in shelf waters of the Republic of Guinea, including its territorial waters, no later than 18:00 hours, 21 May 2017.
3. Article 9.1(J) Special Mobilization and Standby Rate is added to the Contract as follows:
Special Mobilization and Standby Rate (“SMSR”) . Commencing at the moment when the rig enters Guinea territorial waters, the Special Mobilization and Standby Rate of USD 100,000 per day goes into effect, and shall remain in effect until the commencement of Services.
The Special Standby Rate shall cover the following costs:
· All costs associated with moving the Drilling Unit to anchorage offshore Guinea;
·
All costs for the Drilling Unit while the Company is mobilizing its tubulars, third party materials and equipment to the Drilling Unit, rigging up, and preparing the Drilling Unit to begin well drill activities;
· All costs associated with moving the Drilling Unit to the initial well drilling location;
1
· All costs to obtain Contractor’s onshore and offshore personnel visas and work permits, health certificates and other related documents enabling Contractor’s personnel to perform its duties.
Operating Rate shall start once the Company and the Contractor agree the Drilling Unit is positioned one nautical mile from the initial drilling location and is fully prepared to commence well drilling activities (defined for this purpose as “ready to start picking up 36” conductor to start jetting in).