Northern Ocean, the billionaire John Fredriksen-owned harsh-environment offshore rig owner, has signed contracts with the Norwegian offshore contractor Odfjell Drilling.
Odfjell Drilling will provide Northern Ocean's rig fleet with marketing and management services, while commercial chartering decisions will remain with Northern Ocean.
Northern Ocean's 6th semi-submersible drilling rig West Mira is currently warm stacked at Hanøytangen outside Bergen, Norway and Odfjell Drilling will start rig management and marketing of the rig immediately.
Northern Ocean's other 6th gen. semi-submersible drilling rig West Bollsta is contracted to Lundin, Norway through the first quarter of 2022. The current manager for the rig, Seadrill, will complete operations as per the current drilling contract and then transfer rig management to Odfjell Drilling in direct continuation of its activities.
"Preparations for a seamless transfer of rig management is already underway being led by NOL management. Marketing of both rigs will commence immediately by Odfjell Drilling," Northern Ocean said.
“Today’s announcement positions us well for the coming market recovery. We see Odfjell Drilling as the best-in-class harsh environment contractor and are satisfied to have reached this agreement with them. After a long downturn in the drilling market, we are encouraged about the signs of upcycling that are unfolding, particularly in our home markets in the North Sea”, said Scott McReaken, CEO of Northern Ocean and adds: “Our focus now is first and foremost on a safe, successful transfer of rig management to Odfjell Drilling and securing new work for both our rigs. Odfjell Drilling’s strong contracting and operational track record provides a high degree of confidence and improves the outlook for the Company”.
"Odfjell Drilling is privileged to be chosen for our strong operational track record and marketing excellence in securing work. We further view the
cooperation with NOL as strategically important," Odfjell Drilling said.
Worth noting, Odfjell Drilling, while owning a drilling fleet of its own, is not new to managing rigs of owned by other companies. One such rig is Deepsea Yantai semi-submersible drilling rig, owned by China's CIMC, and operating in Norway.