Equinor to Keep DeepSea Aberdeen Rig Busy Off Norway Under $121M Contract Extension

Wednesday, May 22, 2024

Equinor has exercised an option for a batch of eight wells to extend the use of the Odfjell Drilling’s Deepsea Aberdeen rig on the Norwegian Continental Shelf.

The exercised options are planned to start in the fourth quarter of 2025 in direct continuation of the current firm period and extend the firm backlog on the Deepsea Aberdeen to the third quarter of 2026.

The options have a value of approximately $121 million, excluding integrated services, annual cost escalations, performance and fuel incentives.

The contract maintains further optional periods which, if exercised, could keep the Deepsea Aberdeen contracted to 2029, Odfjell Drilling said.

Such optional periods consist of three optional periods of eight wells each, or approximately three times one-year.  The company said that the rates for all such optional periods are to be mutually agreed prior to exercising.

“We are pleased to see the exercise of further options for the use of the Deepsea Aberdeen, which has been on a continuous contract with Equinor since 2022. With this additional backlog now agreed we have further significant, predictable and increasing revenue generation ahead of us and all of our owned fleet now has secured firm backlog until at least mid-2026,” said Kjetil Gjersdal, Chief Executive Officer of Odfjell Drilling.

Deepsea Aberdeen is an enhanced GVA7500 harsh environment design and is Odfjell Drilling’s third rig of the well proven and optimised design. It is a sister rig to the Deepsea Atlantic and Deepsea Stavanger.

The unit, delivered in 2014, is designed for operations in harsh environments and at water depths of up to 3,000 m

Categories: North Sea Industry News Activity Europe Oil and Gas

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