Inchcape Shipping Services (ISS) has announced it has been appointed by Paragon Offshore, Houston, as marine and logistic services provider for a new drilling campaign off the Songo Songo Islands, Tanzania – the first new commercial drilling project in Tanzania in a number of years.
ISS will be providing a range of services for Paragon Offshore including full husbandry, crew logistics, visa assistance and arranging marine and air charters.
A leading provider of standard specification offshore drilling services, Paragon Offshore is deploying jack-up rig M826 on the nine month campaign for PanAfrican Energy Tanzania – the country’s first natural gas producer.
M826 arrived at the field on board semi-submersible vessel, OHT Falcon, to be floated off and pinned to the drilling location.
During the campaign, M826 will clear actively producing wells to enhance output and will drill several new wells in the same field.
According to ISS Tanzania General Manager TS Mahesh the appointment is a boost in the company’s plans to continue its growth.
“We are delighted by our first appointment by Paragon Offshore in East Africa. The opportunity to support this drilling campaign takes ISS to the next level in the oil and gas support service sector in Tanzania and boosts our future growth plans,” said Mahesh.
Through its operating subsidiary, PanAfrican Energy Tanzania Limited received an investment of $60 million by IFC currently contemplated as a subordinated, income participating loan with flexible repayment terms and a maximum tenor of approximately 10 years.
According to PanAfrican Energy the contract awarded in late August carries a minimum duration of 90 days and a minimum financial commitment of US$21 million excluding withholding tax.
The Company’s commitments under the drilling contract are not subject to completion of the IFC financing or funding of such financing.