RWE Dea shuts down rig on declining prices, high costs

RWE Dea shuts down rig on declining prices, high costs 

HAMBURG, Germany -- RWE Dea will not spud the next field development well -- Völkersen Nord Z7 -- at Germany’s Völkersen gas field, the company said.

The T160 drilling rig is being transported to the planned drilling site, where it will be placed in storage. The assembly work and commissioning will be carried out at a later date when feasible.

The declining gas and oil prices and the fact that prices of equipment, material and services remain very high are the reasons for this operational measure.

RWE Dea has taken up discussions with its suppliers with a view to jointly reaching solutions. Other projects will also be studied to generate savings for offsetting the current price developments.

The employees of the drilling operation were informed of the shutdown within the scope of a company meeting. The spudding of the well will be discussed at a later point in time again.

The T-160 drilling rig is one of Europe’s most high-performing drilling systems. The electrically driven deep drilling rig with a drive output of over 6,300 kilowatts also facilitates widely deviated as well as horizontal wells with distances of over 6,000 m. The derrick of the T-160 rig stands about 62 m tall.