Norwegian offshore drilling company Odfjell Drilling has secured a five-year contract with Aker BP ASA for its Deepsea Stavanger semi-submersible drilling rig, for drilling programs scheduled to start in early 2025.
The day rates for the contract will be market-based, within a pre-agreed range, and day rates will be set by two brokers nine months prior to each calendar year.
The base contract value is in the range of $620 million to $730 million, where the ceiling of the day rate range will be adjusted based on an inflation adjustment formula starting from June 2023.
In addition to the market-based day rates, Aker BP will pay performance and fuel savings incentive bonuses.
The contract award is subject to license partner approval and Norwegian governmental approvals of Plan for Development and Operation (PDO) of planned projects.
Kjetil Gjersdal, CEO of Odfjell Drilling says: “This long-term contract confirms our strong relationship with Aker BP. I am confident that Deepsea Stavanger is the right rig to deliver on the high environmental and operational ambitions on the major field development projects Aker BP is planning to execute.