Turkey Buys Two Drillships to Expand its National E&P Fleet

 

Turkey has confirmed the purchase of two seventh generation drillships as the country moves to boost its capacity in offshore exploration. The Turkish Petroleum Corporation (TPAO) says that it has acquired the two vessels West Dorado and West Draco from the Norwegian rig owner Eldorado Drilling. The price was estimated at $490 million for both.

Seadrill ordered these two drillships for $1.1 billion back in 2013, just before the offshore downturn. However, there was no market for them at the time of their completion, and after several deferrals, Seadrill ultimately canceled the order in 2018.

Eldorado – a Norwegian venture created to buy disused drillships for charter or resale – swooped in to buy them at a steep discount in 2023-24, with marketing support from Diamond Offshore. However, the two rigs did not find charterers, and after bearing the cost of layup for a year, Eldorado decided to sell them at a loss to TPAO. It is estimated that in addition to the purchase price, TPAO will spend in excess of $75 million to reactivate each rig, given how long they have been idle.

Last week, the Turkish Minister of Energy Alparslan Bayraktar said that the first vessel would arrive in the country within the next two months. After accreditation and certification, both vessels are expected to be operational by February next year.

“With these additions, Turkey rises to the fourth position in the world in ownership of deep-sea oil and gas explorer fleet,” added Bayraktar. The new vessels will compliment Turkey’s existing fleet of four drillships, which include Fatih, Yavuz, Kanuni and Abdülhamid Han - all operating in the Black Sea. In addition, Turkey has a fleet of two seismic research vessels, Oruc Reis and Barbaros Hayreddin Pasa.

The new rigs share design features, each with a length of 228 meters and 42 meters wide. Both can drill up to 12,000 meters in the deep-sea and have capacity to accommodate 200 personnel.

Turkish maritime media reports that the two new drillships will be deployed in the Mediterranean, north of Cyprus, and in the Black Sea. Turkey has just discovered its latest substantial Black Sea gas find, the Goktepe field. 

Unfortunately, drilling in the Eastern Mediterranean may exacerbate longstanding maritime disputes with Greece and Cyprus. For decades, Greece and Turkey have been in a dispute over the delimitation of their exclusive economic zones (EEZs) in the Aegean Sea and the Eastern Mediterranean. This overlap presents a complication for the development of hydrocarbons, particularly around Greek-aligned Cyprus, where prolific gas deposits have recently been discovered. Turkey has demanded a share of this wealth for the Turkish-aligned government of Northern Cyprus, which is not internationally recognized.

Turkey has also recently strengthened its cooperation with Libya, and TPAO has secured Libyan seismic exploration rights for four areas totaling about 10,000 square kilometers. Libya’s waters have known gas reserves, including fields under production in a Libyan-Italian joint venture with oil major Eni.